XYZ stock price and dividend history are as follows: year beginning of year price dividend paid at year...

50.1K

Verified Solution

Question

Finance

XYZ stock price and dividend history are as follows:
year
beginning of year price
dividend paid at year end
2015 130 2
2016 153 2
2017 128 2
2018 133 2
An investor buys five shares of XYZ at the beginning of 2015,buys another two shares at the beginning of 2016, sells one shareat the beginning of 2017, and sells all six remaining shares at thebeginning of 2018. What is the dollar-weighted rate of return?(Hint: If your calculator cannot calculate internal rate of return,you will have to use a spreadsheet or trial and error.) (Negativevalue should be indicated by a minus sign. Round your answer to 4decimal places.)

Answer & Explanation Solved by verified expert

4.1 Ratings (828 Votes)

SEE THE See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

XYZ stock price and dividend history are as follows:yearbeginning of year pricedividend paid at year end20151302201615322017128220181332An investor buys five shares of XYZ at the beginning of 2015,buys another two shares at the beginning of 2016, sells one shareat the beginning of 2017, and sells all six remaining shares at thebeginning of 2018. What is the dollar-weighted rate of return?(Hint: If your calculator cannot calculate internal rate of return,you will have to use a spreadsheet or trial and error.) (Negativevalue should be indicated by a minus sign. Round your answer to 4decimal places.)

year	beginning of year price	dividend paid at year end
2015	130	2
2016	153	2
2017	128	2
2018	133	2