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 % %
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 % %
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 69E:
Stock Dividends
Crystal Corporation has the following information regarding its common stock: S10...
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