Question #6 ($ wtd avg)

[Adam Gehr]

You're right--there's a typo in the answers.


On Wed, 15 Jan 2003, Tiffany Irving wrote:

> 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
> >
> 
> 
>