Problem 24-6 (Algo)XYZ's stock price and dividend history are as follows:Dividend PaidBeginning-of-Year Price$ 170at Year-EndYear2920282128222823288150178$33a. Arithmetic average rate of returna. Geometric average rate of returnb. Dollar-weighted rate of return33An Investor buys three shares of XYZ at the beginning of 2020, buys another two shares at the beginning of 2021, sells one share atthe beginning of 2022, and sells all four remaining shares at the beginning of 2023.Required:a. What are the arithmetic and geometric average time-weighted rates of return for the investor?Note: Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.b. What is the dollar-weighted rate of return? (Hint: Carefully prepare a chart of cash flows for the four dates corresponding to the turnsof the year for January 1, 2020, to January 1, 2023. If your calculator cannot calculate Internal rate of return, you will have to use trialand error.)Note: Round your answer to 4 decimal places. Negative amount should be indicated by a minus sign.%%

Initially, let's calculate the Holding Period Return for each year. Once we've determined the…

Answered: XYZ's stock price and dividend history…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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An investor is considering purchasing shares in Unicorn plc & has asked for your advice. On April 1st, 2020 the share price was 662p. In the June 2020 an interim dividend of 12p was paid and in January 2021, a final dividend of 32p was paid. On March 31st, 2021 the share price was 724p. What was the TSR for the year for Unicorn Ordinary shares?
Preference sharesOn 1 March 2020, NOL issued 3 million 4% redeemable preference shares of $1 each at par andaccounted for as an equity. NOL will redeem the preference shares on 1 March 2025 at $4,408,000.The effective interest rate associated with the preference shares is 8%. On 28 February 2021, NOLpaid stated rate preference share dividend for the year to its shareholders. Discuss how each of the above events should account for in the financial statement of NOL for theyear ended 28 February 2021 with reference to relevant HKFRSs
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Indicate the amount of annual dividend on each issue of the preferred shares by completing the last column of the above table Assume that there are one year of dividends in arrears at the beginning of 2020, and Essex declared total dividends of $40,000 in 2020. What is the amount of dividends that the common shareholders will receive in 2020?
Note: RP AND IDR The book I use: Intermediate Accounting, Kieso, ifrs Edition, Fourth Edition Questions in image
Calculate the Capital Gain/Loss on 100 shares of the stock Price on September 13th: 211.35 Price on November 24th:207.52 Use the Price on Sep 13th as the purchase price and the Price on November 24th as the sale price. Capital Gain: _______________________________ Percent Return: ___________________________
Assume you purchased the right to sell 2,000 shares of Target stock in February 2022 at a strike price of $240 per share. Suppose Target stock sells for $212 per share immediately before your options’ expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $268 per share (think about it)? Assume your holding period for this investment is exactly three months. Note: A negaive value should be indicated by a minus sign. Do not round intermediate calculations. Enter your 3-month returns as a percent rounded to 2 decimal places.
An investor purchases a share for £6.89 at the beginning of the year. Six months later, the investor receives a dividend of £0.08 (net of tax) and immediately sells the share for £7.26. Capital gains tax of 30% is paid on the difference between the sale and the purchase price. Calculate the net annual effective rate of return the investor obtains on the investment. 数字 Enter a percentage correct to 2 decimal places %
XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2019 $ 155 2020 185 2021 145 2022 155 Arithmetic average rate of return Geometric average rate of return An investor buys three shares of XYZ at the beginning of 2019, buys another two shares at the beginning of 2020, sells one share at the beginning of 2021, and sells all four remaining shares at the beginning of 2022. $ 3 3 3 Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) % % Dollar-weighted rate of return wwww 3 % b. What is the dollar-weighted rat of return? (Hint. Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2019, to January 1, 2022. If your calculator cannot calculate IRR, you will have to use trial and error or a spreadsheet…
You purchased a stock for $50.00 share at the end of 2014. At the end of the years 2015 – 2018 the stock was worth $54.75, $59.13, $56.41, and $60.06 respectfully. You sold the stock at the end of 2019 for $62.00 per share. Calculate your geometric mean annual return for the stock during the period in which you owned it. Report your answer to 2 decimal places You purchased a stock for $50.00 share at the end of 2014. At the end of the years 2015 – 2018 the stock was worth $54.75, $59.13, $56.41, and $60.06 respectfully. You sold the stock at the end of 2019 for $62.00 per share. Calculate your arithmetic mean annual return for the stock during the period in which you owned it. Report your answer to 2 decimal places
What impact does Target's dividendend annoucement have on it's balance sheet? Target Corporation (NYSE:TGT) recently made a dividend annoucement.The announcement read:The board of directors of Target Coporation has declared a quarterly of 90 cents per common share. The dividend is payable December 10, 2021 to shareholders of record at the close of bussiness November 17, 2021. The 4th quater dividend will be the company's 217th consecutive dividend paid since October 1967 when the company became publicly held. Questions: 1. On which date will Target record a liability for the dividend? 2.On which date will Target pay the cash dividend? 3.On the date of declaration,what will the impact (increase,decrease,noeffect) on Target's:a)assets: b)liabilities; and c)stockholders' equity? 4. On the date of payement, what will be the impact (incease,decrease,no effect)on Target's:a)assets:b)liabilities: and c0 stockholdes" equity?
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