Microthin stock investment

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Reference no: EM131352853

We are given the information that Microthin’s stock price was $21 in December 2012, $29 in December 2013, $27 in December 2014, $20 in December 2015, and $26 in December 2016. It also pays annual dividends varying from 2012 through 2016.

Let's assume you do the following transactions:

a) In December 2012: buy 30,000 Microthin shares;

b) In December 2013: collect the dividends ($0.39 per share) on your shares, and then sell 10,000 shares;

c) In December 2014: collect the dividends ($0.43 per share) on your remaining shares, and then buy another 15,000 shares;

d) In December 2015: collect the dividends ($0.50 per share) on your remaining shares, and then sell another 10,000 shares.

e) In December 2016: collect the dividends ($0.52 per share) on your remaining shares, and then sell all your remaining shares.

1: What should be the IRR during your "December 2012 – December 2016" period for your Microthin stock investment?

Reference no: EM131352853

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