How would a constant dividend of per share per year

Assignment Help Financial Management
Reference no: EM131959653

In January 2003, Microsoft announced that it would begin paying a dividend of $0.21 per share. Given the following share prices for Microsoft stock in the recent past, how would a constant dividend of $0.21 per share per year have changed the company's return to its shareholders oer this period?

First day of trading Closing share price

1998 (January 2)

$131.13
1999 (January 4) $141.00
2000 (January 3) $116.56
2001 (January 2)

$43.38

2002 (January 2) $67.04
2003 (January 2) $53.27

Calculate the shareholder return for EACH period without and with dividend below.

Reference no: EM131959653

Questions Cloud

Construct discrete dynamical system for account balance : Construct a discrete dynamical system for the account balance each month by writing a single, linear, non-autonomous equation for Pn+1in terms of Pn.
Would you recommend building the warehouse : Your company wants to build a new warehouse on land originally bought for a plant your company did not build. The land's original cost was 1,000,000.
Should you lease or buy asset : Your company wants to purchase a new network file server for its wide-area computer network. The server costs $24000. Its will be obsolete in three years.
What is your estimate of the required return for this stock : What is your estimate of the required return for this stock? What is your estimate of the value for this stock?
How would a constant dividend of per share per year : How would a constant dividend of $0.21 per share per year have changed the company's return to its shareholders oer this period?
Structure impacts its progress through bankruptcy process : Explain the US bankruptcy process. how a company's structure impacts its progress through the bankruptcy process?
Calculate the free cash flows for the restaurant : Calculate the free cash flows for the restaurant, assuming no assumption of the debt.
Cash flows associated with various facilities : The cash flows from the sales are the only cash flows associated with the various facilities. Based on the information in the preceding paragraph,
Assignment - Data Exploration And Preparation : 31250 Introduction to Data Analytics and 32130 Fundamentals of Data Analytics Assignment. Identify the type of first 30 attributes

Reviews

Write a Review

Financial Management Questions & Answers

  Statements about preferred stock

Which one of the following statements about preferred stock is true?

  The returns of the financial assets in the portfolio

The diversification effect does not work in a portfolio when the returns of the financial assets in the portfolio

  Estimate of the portfolio expected rate of return

A portfolio consists of an index mutual fund which represents the overall market and Treasury bills. The fund has a portfolio weight of 60%. The risk-free rate is 3.2% and the market risk premium is 7.6%. What is your best estimate of the portfolio e..

  Prepare a statement of changes in net worth for the year

Prepare a statement of changes in net worth for the year ended December 31, 2012.- Comment on the statement of changes in net worth.

  Considering project to purchase new equipment

Alessandro Florenzi Company (AFC) is considering a project to purchase a new equipment. What is the project's MIRR?

  Straight-line method to calculate book depreciation-pays tax

Johnson Family Care Inc. is a large ambulatory care center that provides comprehensive 24-hour primary and specialty care to a large suburban population in Pennsylvania.  Johnson uses a straight-line method to calculate book depreciation and pays tax..

  What are the free cash flows of the project

Arnold Inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. What are the free cash flows of project?

  Risk-free rate-what is the company wacc

You are given the following information for Cleen Power Co. Assume the company’s tax rate is 40 percent. What is the company's WACC?

  Assume the tax rates and ordinary income

Assume the following tax rates: ordinary income = 40%; long term capital gains 20%; short term capital gains 40%; dividends 20%

  What would be appropriate value of ford new corporate bond

What would be the appropriate value of Ford's new corporate bond?

  Characterized by high fixed costs

The beer industry is characterized by high fixed costs. If a brewery is operating below capacity, this likely means that it can lower the average cost of the beer it is brewing. Which of the following reasons to 'go global' does this concept align wi..

  Risk management strategy against the unsecured debt

What is Apple’s risk management strategy against the unsecured debt?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd