How did your returns compare

Assignment Help Corporate Finance

Reference no: EM13216651

You bought 100 shares of Starbucks Corp. (SBUX) 7 years ago (1Aug '95) for $5.00 per share and sold the 100 shares today for $20.31 each. What are your returns? At the same time your sister bought 100 shares of Coca-Cola (KO). How did your returns compare (excluding brokerage fees)? Assume today is July 1, 2002 and Coke paid cumulative dividends of $4.94.

Data: Monthly Closing Prices From March 1995 to July 2002 for Coca-Cola and Starbucks.

Date

SBUX

1-Jul-02

49.43

20.31

Step 1: Capital Appreciation

3-Jun-02

56.00

24.85

1-May-02

55.35

24.28

Price you received today

1-Apr-02

55.30

22.82

Price you paid

1-Mar-02

52.07

23.13

Difference

1-Feb-02

47.02

23.01

* 100 shares

2-Jan-02

43.41

23.77

3-Dec-01

46.78

19.05

In 1995 you spent $500 for 100 shares of SBUX.

1-Nov-01

46.59

17.72

Today, when you sold them, your capital appreciation

1-Oct-01

47.33

17.12

is valued at ==>

4-Sep-01

46.31

14.94

1-Aug-01

48.11

16.87

At the same time your sister bought 100 shares of

2-Jul-01

44.08

18.04

Coca Cola. What was her stock's capital appreciation?

1-Jun-01

44.48

23.00

1-May-01

46.67

19.52

Price she received today

2-Apr-01

45.48

19.35

Price she paid

1-Mar-01

44.46

21.22

Difference

1-Feb-01

52.02

23.81

* 100 shares

2-Jan-01

56.90

24.97

Today, when she sold them, her capital appreciation

1-Dec-00

59.78

22.12

is valued at ==>

1-Nov-00

61.44

22.78

2-Oct-00

59.06

22.34

1-Sep-00

53.93

20.03

1-Aug-00

51.33

18.31

Step 2: Dividends

Dividends are given.

3-Jul-00

59.79

18.75

1-Jun-00

56.01

19.09

Dividends per share of SBUX

1-May-00

51.88

17.00

* 100 shares

3-Apr-00

45.93

15.12

Div earnings from SBUX

$ -

1-Mar-00

45.62

22.41

1-Feb-00

47.09

17.56

3-Jan-00

55.62

16.00

1-Dec-99

56.41

12.12

Dividends per share of KO

4.94

1-Nov-99

65.18

13.28

* 100 shares

1-Oct-99

57.00

13.59

Div earnings from KO

1-Sep-99

46.61

12.39

2-Aug-99

57.61

11.44

1-Jul-99

58.34

11.62

Step 3: Total Return Percentage for Holding Period

1-Jun-99

59.72

18.78

3-May-99

65.82

18.44

SBUX cost (price X 100)

1-Apr-99

65.40

18.47

SBUX capital appreciation

$ -

1-Mar-99

58.98

14.03

SBUX dividends

$ -

1-Feb-99

61.22

13.22

SBUX cap. app. + div.

$ -

4-Jan-99

62.60

13.02

Total return = (CA + D) / cost

1-Dec-98

64.22

14.03

2-Nov-98

67.15

11.53

1-Oct-98

64.62

10.84

KO cost (price X 100)

1-Sep-98

55.12

9.05

KO capital appreciation

$ -

3-Aug-98

62.14

7.89

KO dividends ($4.94 per share)

$ -

1-Jul-98

76.81

10.47

KO cap. app. + div.

$ -

1-Jun-98

81.58

13.36

Total return = (CA + D) / cost

1-May-98

74.64

12.00

1-Apr-98

72.26

12.03

For the 6 years and 11 months you and your sister held your

2-Mar-98

73.75

11.33

stocks, your stock return was

and your

2-Feb-98

65.22

9.89

sister's was =>

2-Jan-98

61.54

9.14

1-Dec-97

63.38

9.59

3-Nov-97

59.40

8.72

1-Oct-97

53.70

8.25

Step 4: One Year Total Return Percentage

2-Sep-97

57.85

10.45

1-Aug-97

54.22

10.25

SBUX price on Jul 02*100

1-Jul-97

65.39

10.23

SBUX price on Jul 01*100

2-Jun-97

64.33

9.73

SBUX dividends

1-May-97

64.67

7.88

capital appreciation

1-Apr-97

60.07

7.47

SBUX cap. app. + div.

3-Mar-97

52.63

7.41

TR = (CA + D) / price Jul01

3-Feb-97

57.46

8.41

2-Jan-97

54.52

8.56

2-Dec-96

49.57

7.16

KO price on Jul 02*100

1-Nov-96

48.16

8.66

KO price on Jul 01*100

1-Oct-96

47.45

8.12

KO dividends (.76 per sh)

3-Sep-96

47.81

8.25

capital appreciation

1-Aug-96

46.87

8.19

KO cap. app. + div.

1-Jul-96

43.94

6.50

TR = (CA + D) / price Jul01

3-Jun-96

45.93

7.06

1-May-96

43.01

6.78

1-Apr-96

38.10

6.78

Question 1.

Which stock did better over the holding period?

1-Mar-96

38.68

5.83

1-Feb-96

37.63

4.41

2-Jan-96

35.13

4.19

Question 2.

Which stock did better over the last year?

1-Dec-95

34.60

5.25

1-Nov-95

35.30

5.28

2-Oct-95

33.40

4.91

Question 3.

Are you surprised?

1-Sep-95

32.06

4.73

1-Aug-95

29.75

SBUX

Reference no: EM13216651

Questions Cloud

Determine cutting time to complete the facing operation : determine: (a) the cutting time to complete the facing operation, (b) the cutting speeds and metal removal rates at the beginning and end of the cut.

Major philosopher of the western tradition : Explore and explain the thought of a major philosopher of the Western tradition in regard to how he or she dealt with a particular branch or issue of philosophy

Determine the corresponding angular velocity of gear b : Gear A rotates with an angular velocity of 100 rpm clockwise. Knowing that the angular velocity of arm AB is 50 rpm counterclockwise, determine the corresponding angular velocity of gear B.

Robust and capable electronic commerce systems : What are the characteristics of large firms conducting both B2B and B2C transactions that require more robust and capable electronic commerce systems?

How did your returns compare : Which stock did better over the holding period and which stock did better over the last year - How did your returns compare

Green hexagon -shaped grounding screw on a receptacle : Is it always necessary to attach the bare equipment grounding conductor of a nonmetallic-sheathed cable to the green hexagon -shaped grounding screw on a receptacle?

Define the probability that the first dvd that has a defect : The manager tells you to begin inspecting the new DVDs one at a time at random until you find the first DVD that has a defect. If 10% of the DVDs have a visible defect in the new shipment, what is the probability that the first DVD that has a defe..

Thrown vertically upwards with an initial velocity : A ball is thrown vertically upwards with an initial velocity of 20.72 m/s. Neglecting air resistance, how long is the ball in the air?

Compute the interplanar spacing for the set of planes : compute (a) the interplanar spacing for the set of planes and (b) the atomic radius for the rhodium atom.

User Account

All Pages