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USE EXCEL AND SHOW EXCEL FORMULAS. From Key Statistics and Historical Prices (http: //finance.yahoo.com/q/hp?s=CAT&a=1l&b=l&c=2006&d=02&e=30&f=2010&g=m) of CAT, we found that CATs stock price was about $61

image text in transcribedUSE EXCEL AND SHOW EXCEL FORMULAS.
From "Key Statistics" and "Historical Prices" (http: //finance.yahoo.com/q/hp?s=CAT&a=1l&b=l&c=2006&d=02&e=30&f=2010&g=m) of CAT, we found that CATs stock price was about $61 in Dec. 2006, $73 in Dec. 2007, $45 in Dec. 2008, and $57 in Dec. 2009. It's historical ("trailing") dividend was about $1.76 per share annually. Let's assume you, as a stock investor, have done the following transactions: bought 5,000 CAT shares in Dec. 2006: collected the dividends ($1.76 per share) on your shares one year later, and then sold 3,000 shares in Dec. 2007: collected the dividends ($1.76 per share) on your remaining shares one year later, and then bought another 2,000 shares in Dec. 2008: collected the dividends ($1.76 per share) on your remaining shares one year later, and then sold all your remaining CAT shares in Dec. 2009. What should be the IRR during your "Dec. 2006- Dec. 2009" period for your CAT stock investment? Given the required return R for CAT stock as 11.26% annually, what is your CAT stock investment's NPV over the same period? What is the payback years amount for your CAT stock investment

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