XYZ's stock price and dividend history are as follows. Beginning of Year Dividend Paid at Price Year-End $4 $ 138 166 124 138 Year 2018 2019 2020 2021 4 4 An investor buys three 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 four remaining shares at the beginning of 2021 a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) Arithmetic average rate of return Geometric average rate of return

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 19P: Anoka Company reported the following selected items in the shareholders equity section of its...
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b. What is the dollar-weighted rate of return? (Hint Carefully 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. If your calculator cannot calculate internal rate of return, you will have to use trial
and error) (Round your answer to 4 decimal places. Negative amount should be indicated by a minus sign.)
Dollar-weighted rate of return
%
Transcribed Image Text:b. What is the dollar-weighted rate of return? (Hint Carefully 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. If your calculator cannot calculate internal rate of return, you will have to use trial and error) (Round your answer to 4 decimal places. Negative amount should be indicated by a minus sign.) Dollar-weighted rate of return %
XYZ's stock price and dividend history are as follows.
Dividend Paid at
Year-End
$4
4
4
4
Year
2018
2019
2020
2021
Beginning-of-Year
Price
$ 138
166
124
138
4
An investor buys three 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 four remaining shares at the beginning of 2021
a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of
return and final answers to 2 decimal places. Do not round other calculations.)
Arithmetic average rate of return
Geometric average rate of return.
Transcribed Image Text:XYZ's stock price and dividend history are as follows. Dividend Paid at Year-End $4 4 4 4 Year 2018 2019 2020 2021 Beginning-of-Year Price $ 138 166 124 138 4 An investor buys three 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 four remaining shares at the beginning of 2021 a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) Arithmetic average rate of return Geometric average rate of return.
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