An investor purchased 200 shares of a stock at $60/share on January 1, 2012, then sold 100 shares for $63 on December 31, 2012, and kept the remaining 100 shares through the end of 2014. The stock traded for $80 at the end of 2013, and for $75 at the end of 2014, and paid an annual dividend of $2.00/share on December 30 of each of the three years it was held. What was the investor's dollar-weighted return? O 14.0% O 48.2% O 10.2 12.6%

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
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An investor purchased 200 shares of a stock at $60/share on January 1, 2012, then
sold 100 shares for $63 on December 31, 2012, and kept the remaining 100 shares
through the end of 2014. The stock traded for $80 at the end of 2013, and for $75
at the end of 2014, and paid an annual dividend of $2.00/share on December 30 of
each of the three years it was held. What was the investor's dollar-weighted return?
O 14.0%
48.2%
O 10.2
12.6%
Transcribed Image Text:An investor purchased 200 shares of a stock at $60/share on January 1, 2012, then sold 100 shares for $63 on December 31, 2012, and kept the remaining 100 shares through the end of 2014. The stock traded for $80 at the end of 2013, and for $75 at the end of 2014, and paid an annual dividend of $2.00/share on December 30 of each of the three years it was held. What was the investor's dollar-weighted return? O 14.0% 48.2% O 10.2 12.6%
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