FOUND.OF FINANCIAL MANAGEMENT-ACCESS
17th Edition
ISBN: 9781260519969
Author: BLOCK
Publisher: MCG
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Chapter 18, Problem 7DQ
Summary Introduction
To explain: Whether the upcoming quarterly dividend should be paid if the stock is bought on ex-dividend date.
Introduction:
Ex-dividend Date:
One of the four stages of dividend payment by a company is the ex-dividend date, which helps in determining whether the shareholder will receive the upcoming dividend or not.
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What was X-Co stock’s annual total return (ATR) for 2022 if you bought it for $20 on 1/1; received a $.40 dividend on 3/1 when the stock closed at $18; received a $.40 dividend on 9/1 when the stock closed at $20; and on 12/31 sold the stock for $22? (Express your answer as a percent carried to 1 decimal place.)
You buy a stock for $55 today, and sell the stock one year later for $54, during which time a $2 dividend is paid. What is your norminal return on this stock?
XYZ stock price and dividend history are as follows:
Dividend Paid at
Year-End
$ 4
Year
2018
2019
2020
2021
An investor buys six 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 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.)
Beginning-of-
Year Price
$ 124
135
115
120
Arithmetic time-weighted average returns
Geometric time-weighted average returns
Date
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.)
01/01/2018
01/01/2019
01/01/2020
01/01/2021
Rate of return
Cash Flow
%
%
b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate…
Chapter 18 Solutions
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
Ch. 18 - Prob. 1DQCh. 18 - Prob. 2DQCh. 18 - Prob. 3DQCh. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 6DQCh. 18 - Prob. 7DQCh. 18 - Prob. 8DQCh. 18 - Prob. 9DQCh. 18 - Prob. 10DQ
Ch. 18 - Prob. 11DQCh. 18 - Prob. 1PCh. 18 - Prob. 2PCh. 18 - Prob. 3PCh. 18 - Prob. 4PCh. 18 - Prob. 5PCh. 18 - Planetary Travel Co. has $240,000,000 in...Ch. 18 - Prob. 7PCh. 18 - Prob. 8PCh. 18 - In doing a five-year analysis of future dividends,...Ch. 18 - Prob. 10PCh. 18 - The shares of the Dyer Drilling Co. sell for $60 ....Ch. 18 - Prob. 12PCh. 18 - Prob. 13PCh. 18 - Phillips Rock and Mud is trying to determine the...Ch. 18 - Prob. 15PCh. 18 - Prob. 16PCh. 18 - Prob. 17PCh. 18 - Prob. 18PCh. 18 - Prob. 19PCh. 18 - Prob. 20PCh. 18 - Prob. 21PCh. 18 - Prob. 22PCh. 18 - Prob. 3WE
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Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License