XYZ stock price and dividend history are as follows: Dividend Paid at Year-End $2 Year 2018 2019 2020 2021 Beginning-of-Year Price $ 125 141 120 125 An investor buys six shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one sh at the beginning of 2020, and sells all eight remaining shares at the beginning of 2021 Required: . What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic time-weighted average returns Geometric time-weighted average returns 2 2 2 Date 01/01/2018 01/01/2019 5442330 1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021 (Negative amounts should be indicated by a minus sign.) Cash Flow % %

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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XYZ stock price and dividend history are as follows:
Beginning-of-Year Dividend Paid at
Price
$ 125
141
Year
2018
2019
2020
2021
120
125
Year-End
$2
An investor buys six shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share
at the beginning of 2020, and sells all eight remaining shares at the beginning of 2021.
Arithmetic time-weighted average returns
Geometric time-weighted average returns
Date
01/01/2018
01/01/2019
64012320
2
Required:
a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate
calculations. Round your answers to 2 decimal places.)
2
2
Cash Flow
b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1,
2021 (Negative amounts should be indicated by a minus sign.)
%
%
Transcribed Image Text:XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Price $ 125 141 Year 2018 2019 2020 2021 120 125 Year-End $2 An investor buys six shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all eight remaining shares at the beginning of 2021. Arithmetic time-weighted average returns Geometric time-weighted average returns Date 01/01/2018 01/01/2019 64012320 2 Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2 2 Cash Flow b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021 (Negative amounts should be indicated by a minus sign.) % %
XYZ stock price and dividend history are as follows:
Beginning-of-Year Dividend Paid at
Price
$ 125
141
Year
2018
2019
2020
2021
120
125
Year-End
$2
An investor buys six shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share
at the beginning of 2020, and sells all eight remaining shares at the beginning of 2021.
Arithmetic time-weighted average returns
Geometric time-weighted average returns
Date
01/01/2018
01/01/2019
64012320
2
Required:
a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate
calculations. Round your answers to 2 decimal places.)
2
2
Cash Flow
b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1,
2021 (Negative amounts should be indicated by a minus sign.)
%
%
Transcribed Image Text:XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Price $ 125 141 Year 2018 2019 2020 2021 120 125 Year-End $2 An investor buys six shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all eight remaining shares at the beginning of 2021. Arithmetic time-weighted average returns Geometric time-weighted average returns Date 01/01/2018 01/01/2019 64012320 2 Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2 2 Cash Flow b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021 (Negative amounts should be indicated by a minus sign.) % %
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