What are the arithmetic and geometric average time-weighted

Assignment Help Finance Basics
Reference no: EM13567292

XYZ stock price and dividend history are as follows:

Year

Beginning-of-Year Price

Dividend Paid at Year-End

1998

$100

$4

1999

120

4

2000

90

4

2001

100

4

An investor buys three shares of XYZ at the beginning of 1998, buys another two shares at the beginning of 1999, sells one share at the beginning of 2000, and sells all four remaining shares at the beginning of 2001.

a. What are the arithmetic and geometric average time-weighted rates of return for the investor?

b. What is the dollar-weighted rate of return? (Hint: Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 1998, to January 1, 2001. If your calculator cannot calculate internal rate of return, you will have to use trial and error.)

Reference no: EM13567292

Questions Cloud

A firm is evaluating a proposal which has an initial : a firm is evaluating a proposal which has an initial investment of 45000 and has cash flows of 5000 in year 1 20000 in
Badger recorded 500000 of net sales for the year which 2 : badger recorded 500000 of net sales for the year which 2 is estimated to be uncollectable. identify and analyze the
In 2012 rec room sports reported earnings per share of 850 : in 2012 rec room sports reported earnings per share of 8.50 when its stock price was 212.50. in 2013 its earnings
Data concerning hewell enterprises corporations single : data concerning hewell enterprises corporations single product appear below selling price per unit 200 variable expense
What are the arithmetic and geometric average time-weighted : xyz stock price and dividend history are as followsyearbeginning-of-year pricedividend paid at
A boat costing 108000 and uninsured was wrecked the very : 1. quirch inc. manufactures machine parts for aircraft engines. the ceo chucky valters was considering an offer from a
What are the impacts of the immigration on british society : essay question what are the impacts of the immigration on british society? 700 wordsplease take some examples from the
Prepare a cost of production report and identify the : cost of production report robusta coffee company roasts and packs coffee beans. the process begins by placing coffee
Calculate the time-weighted geometric average return on : a manager buys three shares of stock today and then sells one of those shares each year for the next 3 years. his

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd