XYZ's stock price and dividend history are as follows:Year Beginning-of-Year Price Dividend Paid at Year-End2019$ 155202018520211452022155Arithmeticaverage rate of returnGeometric average rate of returnAn investor buys three shares of XYZ at the beginning of 2019, buys another two shares at the beginning of 2020, sells one share atthe beginning of 2021, and sells all four remaining shares at the beginning of 2022.$ 333Required:a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates ofreturn and final answers to 2 decimal places. Do not round other calculations.)%%Dollar-weighted rate of returnwwww3%b. What is the dollar-weighted rat of return? (Hint. Carefully prepare a chart of cash flows for the four dates corresponding to the turnsof the year for January 1, 2019, to January 1, 2022. If your calculator cannot calculate IRR, you will have to use trial and error or aspreadsheet program.) (Round your answer to 4 decimal places. Negative amount should be indicated by a minus sign.)

Here, YearBeginning PriceDividend Paid _end of Year20191553202018532021145320221553

Answered: XYZ's stock price and dividend history…

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 3E

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