Question: Please provide specific Excel functions =NPV(), =IRR(), =AVERAGE(), =YIELD() whenever applicable. We are given the information that Microthins stock price was $21 in December 2014,
Please provide specific Excel functions =NPV(), =IRR(), =AVERAGE(), =YIELD() whenever applicable.
We are given the information that Microthins stock price was $21 in December 2014, $29 in December 2015, $27 in December 2016, $20 in December 2017, and $26 in December 2018. It also pays annual dividend amounts varying from 2014 through 2018.
Let's assume you do the following transactions:
a) In the end of December 2014: buy 30,000 Microthin shares;
b) In the end of December 2015: collect the dividends ($0.39 per share) on your shares, and then sell 10,000 shares;
c) In the end of December 2016: collect the dividends ($0.43 per share) on your remaining shares, and then buy another 15,000 shares;
d) In the end of December 2017: collect the dividends ($0.50 per share) on your remaining shares, and then sell another 10,000 shares.
e) In the end of December 2018: collect the dividends ($0.52 per share) on your remaining shares, and then sell all your remaining shares.
Q1: What should be the IRR during the "December 2014 December 2018" period for your Microthin stock investment?
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