Question

In: Finance

IBC has dividends and prices following the table above. Assuming dividends are reinvested, what was IBC’s annual return for 2019?

IBC

Date

1/1/2019

3/10/2019

6/9/2019

9/12/2019

12/31/2019

Price

50

45

55

52

54

Dividend

0.25

0.25

0.25

0.25

IBC has dividends and prices following the table above. Assuming dividends are reinvested, what was IBC’s annual return for 2019?

Instruction: Type your answer in the unit of percentage point, and round to three decimal places. E.g., if your answer is 0.0106465 or 1.06465%, should type ONLY the number 1.065, neither 0.0106465, 0.0106, nor 1.065%, because I already have percentage sign at the end of the problem. Otherwise, Blackboard will treat it as a wrong answer.

Solutions

Expert Solution

Dividends are Reinvested means the dividends are used to purchase the share or fraction of the share based on the price on the dividend payment date.

jeff jeffy answered 2 years ago
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