XYZ's stock price and dividend history are as follows: Year 2019 2020 2021 2022 Beginning-of-Year Price $ 66 86 56 66 Dividend Paid at Year-End $ 4 4 4 4 es 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. 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.) Arithmetic average rate of return Geometric average rate of return 1.24 % % 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 answer to 4 decimal places. Negative amount should be indicated by a minus sign.) Dollar-weighted rate of return % A
XYZ's stock price and dividend history are as follows: Year 2019 2020 2021 2022 Beginning-of-Year Price $ 66 86 56 66 Dividend Paid at Year-End $ 4 4 4 4 es 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. 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.) Arithmetic average rate of return Geometric average rate of return 1.24 % % 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 answer to 4 decimal places. Negative amount should be indicated by a minus sign.) Dollar-weighted rate of return % A
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 8MC: Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde...
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Question
F2
![XYZ's stock price and dividend history are as follows:
Year
2019
2020
2021
2022
Beginning-of-Year Price
$ 66
86
56
66
Dividend Paid at Year-End
$ 4
4
4
4
es
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.
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.)
Arithmetic average rate of return
Geometric average rate of return
1.24 %
%
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 answer to 4 decimal places. Negative amount should be indicated by a minus sign.)
Dollar-weighted rate of return
%
A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F218ff6af-abf6-454f-b79f-2cdce97f27ea%2F5175aa16-982b-4545-863c-c9ffe872c52d%2F5cli9g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:XYZ's stock price and dividend history are as follows:
Year
2019
2020
2021
2022
Beginning-of-Year Price
$ 66
86
56
66
Dividend Paid at Year-End
$ 4
4
4
4
es
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.
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.)
Arithmetic average rate of return
Geometric average rate of return
1.24 %
%
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 answer to 4 decimal places. Negative amount should be indicated by a minus sign.)
Dollar-weighted rate of return
%
A
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