You invest $9,724 in stock and receive $105, $114, $114, and $105 in dividends over the...

Question

Question

You invest $9,724 in stock and receive $105, $114, $114, and $105 in dividends over the following 4 years. At the end of the

Answer 1

Answer #1

The IRR of the stock investment can be calculated with the help of IRR function of excel .

In order to calculate the IRR identify the cash flows:

CF0 = - 9724

CF1 = 105

CF2 = 114

CF3 = 114

CF4 = 105+13000 = 13105

IRR = 8.54%

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Answer 2

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