What are the geometric average time-weighted rates of return for the investor?

consider the following cash flows.
year 2 22600$
year 3 40600$
year 5 58600$
assume an interest rate of 9.4% per year.
if today is year 0 what is the future value of cash flows 5 years from now?

The expected dividends for a stock are: Year 1=$2, Year 2=$3, after Year 2, we expect dividends to grow by 6% forever. If we require an annual return of 8% from this stock, what would be the value of the stock to us? If it sells for $30 in the market, should we buy it?

XYZ stock price and dividend history are as follows:

An investor buys three shares of XYZ at the beginning of 2010, buys another one shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all three remaining shares at the beginning of 2013.

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.)

b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (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.)

Rate of return             %

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 140 $ 4 2011 $ 159 $ 4 2012 $ 132 $ 4 2013 $ 137 $ 4 An investor buys five shares of XYZ at the beginning of 2010, buys another three shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at the beginning of 2013. 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.) Arithmetic mean 2.93 % Geometric mean 2.08 % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.) Date Cash Flow 1/1/2010 $ -700 1/1/2011 -457 1/1/2012 164 1/1/2013 987 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.) Rate of return %

XYZ stock price and dividend history are as follows:

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

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.)

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.)

1) A project has the following cash flows:

Year 0 -$22,500, Year 1 $12,650, Year 2 $10,900, and Year 3 $6,500. What is the IRR of the project? Please round your answer to two decimal places.

2) Following question 1, suppose the cost of capital is 15%. Would you accept or reject the project according to the IRR criterion? Accept or Reject

3) Following questions 1 and 2, which of the following statements about the IRR rule is false?

- The IRR of the project would be higher if the cash flow in year 3 is increased to $7,500.

- The IRR of the project will remain the same as in question 1 even if the cost of capital is increased to 20%.

- The investment decision by the IRR rule will remain unchanged even if the cost of capital is increased to 20%.

- Both (B) and (C) are false.

4) OpenSeas Inc., is evaluating the purchase of a new cruise ship. The ship would cost $400 million today. OpenSeas expects annual cash flows from the new ship to be $70 million and these cash flows will last forever. The cost of capital is 16%. What is the IRR of the new cruise ship? Answer in unit of %

1. Consider the one-year interest rates known at the following dates:

year 0: 2%

year 1: 2.5

year 2: 3%

year 3: 3.5%

year 4: 4%

year 5: 4.5%

year 6: 5%

year 7: 5.5%

year 8: 6%

year 9: 6.5%

Using the Expectations Theory, find the interest rates of maturities 1 through 10. Use the arithmetic average method. What do they suggest about the shape of the yield curve?