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IRR for 2 cash flows

  1. #1
    Maxymus
    Guest

    IRR for 2 cash flows

    I have the monthly closing prices and dividends of a stock in 2 separate
    column. I want to calculate the IRR for a seven year period, i.e the investor
    bought the stock and held it for 7 years and received the dividends. I am
    able to calculate it , but the thing is that I have to do it 156 times. Is
    there a quick way to replicate it easily using a formula or something else?

    Thank you very much!

    Maxime Isabel

  2. #2
    Fred Smith
    Guest

    Re: IRR for 2 cash flows

    I don't understand why you say you have to calculate it 156 times, but
    regardless, you have two choices.

    If the dividends are regular, you can use IRR. IRR will quite happily take a
    range of 156 cells. Remember, like all financial functions, IRR will calculate
    the periodic return. So if your dividends are quarterly, you will get a
    quarterly return, which you would need to multiply by 4 to get an annual rate.

    If the dividends are irregular (happen at different intervals), use XIRR. For
    this function, you create a table of the cash flows and the dates they occurred.

    --
    Regards,
    Fred


    "Maxymus" <[email protected]> wrote in message
    news:[email protected]...
    >I have the monthly closing prices and dividends of a stock in 2 separate
    > column. I want to calculate the IRR for a seven year period, i.e the investor
    > bought the stock and held it for 7 years and received the dividends. I am
    > able to calculate it , but the thing is that I have to do it 156 times. Is
    > there a quick way to replicate it easily using a formula or something else?
    >
    > Thank you very much!
    >
    > Maxime Isabel




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