XYZ stock price and dividend history are as follows:Beginning-of-$ 130Dividend Paid atYearYear PriceYear-End2021$ 2202220231532202412813322An investor buys five shares of XYZ at the beginning of 2021, buys another two shares at the beginning of 2022, sells one share at thebeginning of 2023, and sells all six remaining shares at the beginning of 2024.Required:a. What are the arithmetic and geometric average time-weighted rates of return for the investor?Note: Do not round intermediate calculations. Round your answers to 2 decimal places.Arithmetic time-weighted average returnsGeometric time-weighted average returns%%b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2021, to January 1, 2024.Note: Negative amounts should be indicated by a minus sign.Date01/01/202101/01/2022Cash Flow01/01/202301/01/2024b-2. What is the dollar-weighted rate of return? (Hint. If your calculator cannot calculate internal rate of return, you will have to use aspreadsheet or trial and error.)Note: Do not round intermediate calculations. Negative value should be indicated by a minus sign. Round your answer to 4decimal places.Rate of return%

Question aMetricValueArithmetic time-weighted return3.22%Geometric time-weighted return2.24%…

Answered: XYZ stock price and dividend history…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 80E: Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented...

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