XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

XYZ stock price and dividend history are as follows:

Year	Beginning-of-Year Price			Dividend Paid at Year-End
2015		$	124		$	4
2016			135			4
2017			115			4
2018			120			4

An investor buys six shares of XYZ at the beginning of 2015, buys another two shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all seven remaining shares at the beginning of 2018.

b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018. (Negative amounts should be indicated by a minus sign.)

b-2. 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.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

Please note : Dollar weighted rate of return in decimal format = 0.00961210344119867 (please round it as per your requirement)

jeff jeffy answered 2 months ago

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XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End...

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