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XYZ stock price and dividend history are as follows: Year 2007 2008 2009 2010 Dividend Paid at Year-End S4 S 4 $ 4 S 4

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XYZ stock price and dividend history are as follows: Year 2007 2008 2009 2010 Dividend Paid at Year-End S4 S 4 $ 4 S 4 Beginning-of-Year Price $160 S 170 150 $155 An investor buys 3 shares of XYZ at the beginning of 2007, buys another 2 shares at the beginning of 2008, sells 1 share at the beginning of 2009, and sells all 4 remaining shares at the beginning of 2010 Requirement 1: What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your answers to 2 decimal places. Omit the'%" sign in your response.) Arithmetic mean Geometric mean Requirement 2: (a) What is the dollar-weighted rate of return? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Rate of return (b) Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2007, to January 1, 2010. (Negative amounts should be indicated by a minus sign. Omit the "$ sign in your response.) Year 2007 2008 2009 2010 $ Cash flow

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