Question #6 ($ wtd avg)

[Tiffany Irving]

I think I've calculated the correct cash flows, but I get an IRR of -.17%
I'm using cash flows, -300, -208, 110, and 396.

Any suggestions?  Thanks.
Tiffany Irving

-----Original Message-----
From: owner-fin335 at forums.depaul.edu
[mailto:owner-fin335 at forums.depaul.edu]On Behalf Of Adam Gehr
Sent: Wednesday, January 15, 2003 12:03 PM
To: DEBORAH BESENHOFER
Cc: fin335 at forums.depaul.edu
Subject: Re: Question #6 ($ wtd avg)


You have to calculate in the dividends received every year. For example,
after one year you recieve dividends on three shares ($12) and pay 220 for
the new shares for a net cash outflow of 208.


On Wed, 15 Jan 2003, DEBORAH BESENHOFER wrote:

> Does anyone have the actual cash flow amts used to get the dollar wtd
avg=.17%?
> I have -300, -220, 90 and 429.25??? and come up with a wtd avg=-.06%. I
can't figure out how the answer should be .17%.
> Debbie Besenhofer
>