Question
1)a) You have to choose one company from the S&P500 that has been paying dividends during the last three years (A), one company that has
1)a) You have to choose one company from the S&P500 that has been paying dividends during the last three years (A), one company that has done a stock split (B), and one company that has made a stock dividend (C). You should show the price development of the shares of the company (A) during the 10 days prior and after the dividend.
b) Show a graph with the comparison of the price development of the days close to the dividend for the last three years. Explain if the price showed a change equal/similar to the dividend, and why.
c) Check the same situation with the company that had a stock dividend (C), do you think that the reaction of the prices is the same, explain differences and similarities.
d) In the case of company (B) explain which was the price before the stock split and what is the price after the stock split. Is the new price more in line with the market values?. What is the average price per share of the industry? Has the company increased its return as a consequence of the stock split, does it provide any advantage?
Please give me some real number and also how you did the calculation ! thank you
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