XYZ's stock price and dividend history are as follows:Beginning-of-YearPriceYear2019 $ 1102020 1202021 1002022 110-1.34%-3.64%-2.58%-5.47%-0.37%Dividend Paid at Year-End$4444An investor buys three shares of XYZ at the beginning of 2019, buys another twoshares at the beginning of 2020, sells one share at the beginning of 2021, and sellsall four remaining shares at the beginning of 2022. What is the dollar-weighted rateof return? (Hint: Carefully prepare a chart of cash flows for the four datescorresponding to the turns of the year for January 1, 2019, to January 1, 2022.

The dollar-weighed return for a cash flow series is the rate at which the present value of cash…

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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Consider the following price and dividend data for Quicksilver Inc.: Dividend ($) Price ($) $14.4 $13.51 $9.14 $10.74 $8.02 $7.72 Date December 31, 2020 January 26, 2021 April 28, 2021 July 29, 2021 October 28, 2021 December 30, 2021 Assume that you purchased Quicksilver's stock at the closing price on December 31, 2020 and sold it after the dividend had been paid at the closing price on January 26, 2021. Your capital gains rate (yield) for this period is closest to A. 0.88% OB. -5.42% $0.11 $0.11 $0.11 $0.11 OC.-6.18% OD. 0.8% ...
Answer the multiple-choice question below: 1. Brown's Founders has preferred stock outstanding which pays a dividend of $5 at the end of each year. The preferred stock sells for $60 a share. What is the preferred stock's required rate of return? Select one: a.Kps=12.30% b.kps= 4.65% c.Kps=15.50% d.Kps=8.33%
Oweninc has a current stock price of $14.30 and is expected to pay a $0.70 dividend in one year. If Owenlnc's equity cost of capital 11%, what price would Oweninc's stock be expected to sell for immediately after it pays the dividend? OA. $12.14 OB. $15.87 OC. $10.62 OD. $15.17
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…
XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price 2019 2020 2021 2022 $88 108 78 88 Dividend Paid at Year-End $4 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 Arithmetic average rate of return Geometric average rate of return 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 4 4 4 % % 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, 2019, to January 1, 2022. If your calculator cannot calculate IRR, you will have to use trial and error or a spreadsheet program.) (Round your…
XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Year 2018 2019 Price $ 140 159 132 137 2020 2021 Year-End $ 4 4 4 4 An investor buys five 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 seven remaining shares at the beginning of 2021. 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.) Arithmetic time-weighted average returns Geometric 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, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Date Cash Flow 01/01/2018 01/01/2019 01/01/2020 01/01/2021
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?
On January 3, 2022 you purchased 275 shares of Bird House, Inc. at $61.38 per share. Since then, you have received the following dividends per share: $0.17 (January 17), $0.17 (April 16). $0.19 (July 18). $0.19 (October 17), $0.19 (January 20). The current price of the stock is $63.09. What is the Capital Gains (Loss) Yield in percent (%)? (recurring content question) 1.71% -2.71% 2.21% O 2.79% O 2.71%
Date of issuance: June 17, 2018 Optionally redeemable beginning: June 18, 2020 Par value (gross proceeds): $ 3,000,000 Number of shares: 200,000 Liquidation preference per share: $ 15 Conversion price per share: $ 20.58 Number of common shares in which to be converted: 145,772 Dividend rate: 6.810 % The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark’s common stock equal to the number of preferred shares being converted times a fraction equal to $15 divided by the conversion price. The conversion prices for the Preferred Stock are subject to customary adjustments in the event of stock splits, stock dividends and certain other distributions on the Common Stock. Cumulative dividends for the Preferred Stock are payable in arrears, when, as, and if declared by the Board of Directors, on March 31, June 30, September 30, and December 31 of each year. The Preferred Stock is optionally redeemable by the Company…
Outstanding stock of the Marigold Corporation included 39800 shares of $5 par common stock and 19900 shares of 6%, $10 par noncumulative preferred stock. In 2019, Marigold declared and paid dividends of $8900. In 2020, Marigold declared and paid dividends of $24400. How much of the 2020 dividend was distributed to preferred shareholders? O $15920 $8900 O $11940 O None of these answer choices are correct
Year 2018 2019 2020 2021 Beginning-of-Year Price $ 120 144 108 120 Dividend Paid at Year-End $4 4 An investor buys three shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all four remaining shares at the beginning of 2021. 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.) Answer is complete but not entirely correct. Arithmetic average rate of return Geometric average rate of return 2.08% 123%
Year beginning of year price Dividend paid 2015 125 2 2016 141 2 2017 120 2 2018 125 2 An investor buys six shares of this stock at the beginning of 2015, buys another beginning of 2016 sells one share at the beginning o 2017 sells all remaining share on 2018What are the arithmetic and geometric average weighted rate of return for the investor? What is the dollar-weighted rate of return?

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