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You purchase 150 shares of Chaeryeong Company at a price of $56.00 per share in a cash account. The company does not pay dividends. A:

You purchase 150 shares of Chaeryeong Company at a price of $56.00 per share in a cash account. The company does not pay dividends.

A: Show your initial account balance sheet.

B: Assume the stock increases to $61.00 per share: Show the new account balance sheet.

C: Calculate the percentage gain or loss on the stock.

D: Assume instead the stock decreases to $48.00 per share [from the original stock price]. Calculate the percentage gain or loss on the stock. Assume instead you made the following investments and withdrawals of Chaeryeong Company stock. Calculate the dollar-weighted average return.

Year 0 Original investment ($8,400)
Year 1 Additional investment ($400)
Year 2 Withdrawal $1,600
Year 3 Additional investment ($800)
Year 4 Current balance $9,150

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