A prospective investor obtained the following information on XY stock: Date Stock Prices ($) Dividends Paid 4/01/2020 61.25 2/02/2020 52.38 0.75 4/05/2020 64.88 0.75 30/06/2020 70.50 0.75 25/10/2020 75.75 0.75 30/12/2020 71.00 Calculate the time-weighted rate of return using both the Linking and Index methods.
A prospective investor obtained the following information on XY stock: Date Stock Prices ($) Dividends Paid 4/01/2020 61.25 2/02/2020 52.38 0.75 4/05/2020 64.88 0.75 30/06/2020 70.50 0.75 25/10/2020 75.75 0.75 30/12/2020 71.00 Calculate the time-weighted rate of return using both the Linking and Index methods.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 21MC
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A prospective investor obtained the following information on XY stock:
| Date | Stock Prices ($) | Dividends Paid |
| 4/01/2020 | 61.25 | |
| 2/02/2020 | 52.38 | 0.75 |
| 4/05/2020 | 64.88 | 0.75 |
| 30/06/2020 | 70.50 | 0.75 |
| 25/10/2020 | 75.75 | 0.75 |
| 30/12/2020 | 71.00 |
Calculate the time-weighted
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