You invest $2,350 in stock and receive $24 , $26 , $26 , and $ 24...
You invest $2,350 in stock and receive $24 , $26 , $26 , and $ 24 in dividends over the following 4 years. At the end of the 4 years, you sell the stock for $3,000. What was the IRR on this investment?
The IRR on this investment is
Homework Answers
To calculate IRR , we can use financial calculator.
Cash flows will be as follow:
CF0 = -2350 , CF1= 24 , F1=1 , CF2 = 26 , F2 =2 , CF3 = 3024 ( dividend + selling price of stock) , F3 =1 CPT IRR
IRR = 7.269%
To calculate in MS excel,
Write down all the cashflows as shown in figure below.
Formula for IRR =IRR(values, guess) as shown in figure.
Add Answer to:
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