The cost of equity for Stock A is 10% p.a. John made the following investments in Stock
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John made the following investments in Stock A. Calculate his money-weighted return earned over the 5-year period. Balance from previous year New investment by investor Net balance at beginning of year Investment return for the year Investment gains or (loss) Withdrawal by investor Balance at end of year 0 100 100 -50% -50 0 50 2 50 950 1000 35% 350 3 1000 1000 0 1000 27% 270 -350 0 1270 st 4 1270 230 1500 10% 150 -150 1500 5 1500 0 1500 20% 300 -1800 0 John made the following investments in Stock A. Calculate his money-weighted return earned over the 5-year period. Balance from previous year New investment by investor Net balance at beginning of year Investment return for the year Investment gains or (loss) Withdrawal by investor Balance at end of year 0 100 100 -50% -50 0 50 2 50 950 1000 35% 350 3 1000 1000 0 1000 27% 270 -350 0 1270 st 4 1270 230 1500 10% 150 -150 1500 5 1500 0 1500 20% 300 -1800 0
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Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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