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Author Question: Taylor bought a stock for $68 a share three years ago. The stock does not pay any dividends. Today ... (Read 141 times)

moore.cailinf

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Question 1

Table 1
AB
1YearCash Flow
20$(5,000)
31$4,000
42$3,000

Given a spreadsheet similar to the one shown in Table 1, the command to compute the internal rate of return would be
◦ =RATE(3,B3,B4,B2).
◦ =IRR(B2:B4).
◦ =IRR(B3:B4)-B2.
◦ =TVM(A2:B4).

Question 2

Taylor bought a stock for $68 a share three years ago. The stock does not pay any dividends. Today she sold the stock for $57 a share. What was her internal rate of return on this investment?
◦ 6.43%
◦ -5.71%
◦ 19.30%
◦ -6.43%


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Marked as best answer by moore.cailinf on Mar 29, 2022

latoyia.cook

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moore.cailinf

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


dantucker

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Reply 3 on: Yesterday
Excellent

 

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