How did your returns compare

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

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