just cancel it

Problem You bought 100 shares of Starbucks Corp. (SBUN Pyears (Aug 1953 for $5.00 per share and sold the 100 shares today for $20,31 cach. What are your retums? At the same time your sister bought 100 shares of Coca Cola (KO). How did your retums compare (excluding brokerage fees. Assume today is July 2002 and Coke paid cumulative 10 dividends of $191 11 12 13 Data: Monthly Closing Prices From March 1995 to July 2002 for Coca Cola and Starbucks. 14 A Step 1. Capital Appreciation 2031 Price you received today Price you paid Difference 100 shares 15 31 S 1531 In 1993 you spent $500 for 100 shares of SBUX Today, when you sold them your capital appreciation is valued at 1031 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Date 1.Jul 02 3 Jun-02 1 May-02 1-Apr-02 1 Mar 02 Feb 02 2 Jan 02 3-Dec 01 1-Nov 01 1.Oct 01 4.Sep-01 1.Aug 01 2 Jul 01 1-un-01 1-May 01 2-Apr-01 1-Mar-01 1-Feb-01 2 Jan 01 1-Dec.00 INOV:00 D-Oct-00 1-Sep-00 THAN . 4943 16.00 35135 55 B0 5207 47:02 4341 46.78 46.59 17:33 $6.31 48.11 14.08 44.48 46.67 45.48 44.46 $2.02 56.90 19.78 6144 09.06 03193 SBUN 20131 24.85 2428 22.82 2313 23.01 23.72 19.05 12.12 17.12 14.94 16.87 18.04 23.00 19:52 19.35 2120 23.81 2492 22.12 22.18 PADA 2013 At the same time your sister bought 100 shares of Coca Cola. What was her stock's capital appreciation? Price she received today 49.431 Price she paid 29.751 Difference 19.681 100 shares S1.968 Today when she soldithem, her capital appreciation As valued at 1968 M Step 2: Dividends Dividends are given. 20.30 20.03 18.31 18.78 19.09 17.00 15.12 22:41 17.56 1600 12.12 Dividends per share of SBUX 100 Shares Div eartungs from SBUX . 1.941 13.28 Dividends per share of KO 100 shares Div earungs from KO S 194 Step 3: Total Retum Percentage for Holding Period 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 2-Oct-00 1-Sep-00 1-Aug-00 3-Jul-00 1 Jun-00 1-May-10 3-Apr-00 1-Mar-00 1-Feb-00 3.Jan-00 1-Dec 99 1-Nov-99 1-Oct-99 1-Sep-99 2-Aug-99 1-J199 1-Jun-99 3 May-99 1-Apr 99 1-Mar-99 1-Feb-99 4-Jan 99 1-Dec-98 2-Nov-98 1-Oct-98 1-Sep-98 3-Aug-98 1-Jul-98 1.Jun 98 1-May-98 Apr 98 2-Mar-98 2 Feb.98 2-Jan-98 1-Dee 97 3. NOV-97 59.06 53.93 5133 59.79 56.01 51 88 45.93 45.62 47.09 55.62 56.41 65.18 5700 4661 57.61 58.34 5972 63.82 65.40 $8.98 61222 62.60 6422 67.13 64.62 55.12 62.14 76 81 SL58 14 61 2.26 35 65.22 104 338 59.40 A 1359 12.39 11:44 11.62 18.78 18:44 18.47 14.03 13.22 13.02 14.03 1103 10.84 9.05 789 10:47 SBUX cost (pnce X 100) SBUX capital appreciation SBUX dividends SBUX cap. app. + div. Total rehim(CAD) cost 500 $ 1,031 S 531 S 1,562 B KO cost (price X 100) KO capital appreciation S 1,968 KO dividends ($4.91 per share). S 494 KO cap app. div S.1 2.462 Total return (CAD) cost 13.36 12:00 12.13 11.33 9.89 For the 6 years and Il months you and your sister held your stocks, your stock retum was and your sisters was V14 2:19 F G H Step 4. One Year Total Retum Percentage D 8.25 10.45 1005 10.23 S2,031 S 1.804 9.23 4 73 74 75 76 77 78 79 80 81 82 B3 34 35 36 37 38 19 SBUX price on Jul 021100 SBUX price on Jul 01 100 SBUX dividends capital appreciation SBUX cap. app. + div. TR-(CA D/pnce Juli #NAME? B 1-Oct-97 2-Sep-92 1-Aug-97 1-Jul-97 2 Jun-97 1-May-97 1. Apr.97 3-Mar-97 3.Feb-97 2. Jan-97 2-Dec-96 1-Nov-96 1-Oct-96 3-Sep-96 1-Aug-96 1-Jul-96 3. Jun 96 1 May-96 1. Apr-96 1-Mar-96 1.Feb.96 Jan-96 1-Dec-95 | Nov.95 2.Oct 95 1 Sep 05 1-Aug-95 C 100 5285 3402 6539 64.33 64.67 60.07 52.63 57.46 51.52 49 57 48.16 4745 47.81 46.87 43.94 45 93 13.01 38 10 38.68 37.63 35.13 34.60 35.30 33.40 32.06 29.75 2188 242 141 8.41 8.56 7.16 8,66 8.12 8.25 8.19 6.00 2.06 6.78 6.78 5183 4.41 4.19 0.25 5128 4.91 4.73 KO pnce on Jul 02-100 KO price on Jul 01 100 KO dividends (26 per sb) capital appreciation KO cap. app. div. TRKCAD/price Ju101 Question 1 Which stock did better over the holding penod? 4 5 Question 2 | Which stock did better over the last year? Question Are you surprised? 0 SBUN 2 Problem 2: Problem You bought 100 shares of Starbucks Corp. (SBUN Pyears (Aug 1953 for $5.00 per share and sold the 100 shares today for $20,31 cach. What are your retums? At the same time your sister bought 100 shares of Coca Cola (KO). How did your retums compare (excluding brokerage fees. Assume today is July 2002 and Coke paid cumulative 10 dividends of $191 11 12 13 Data: Monthly Closing Prices From March 1995 to July 2002 for Coca Cola and Starbucks. 14 A Step 1. Capital Appreciation 2031 Price you received today Price you paid Difference 100 shares 15 31 S 1531 In 1993 you spent $500 for 100 shares of SBUX Today, when you sold them your capital appreciation is valued at 1031 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Date 1.Jul 02 3 Jun-02 1 May-02 1-Apr-02 1 Mar 02 Feb 02 2 Jan 02 3-Dec 01 1-Nov 01 1.Oct 01 4.Sep-01 1.Aug 01 2 Jul 01 1-un-01 1-May 01 2-Apr-01 1-Mar-01 1-Feb-01 2 Jan 01 1-Dec.00 INOV:00 D-Oct-00 1-Sep-00 THAN . 4943 16.00 35135 55 B0 5207 47:02 4341 46.78 46.59 17:33 $6.31 48.11 14.08 44.48 46.67 45.48 44.46 $2.02 56.90 19.78 6144 09.06 03193 SBUN 20131 24.85 2428 22.82 2313 23.01 23.72 19.05 12.12 17.12 14.94 16.87 18.04 23.00 19:52 19.35 2120 23.81 2492 22.12 22.18 PADA 2013 At the same time your sister bought 100 shares of Coca Cola. What was her stock's capital appreciation? Price she received today 49.431 Price she paid 29.751 Difference 19.681 100 shares S1.968 Today when she soldithem, her capital appreciation As valued at 1968 M Step 2: Dividends Dividends are given. 20.30 20.03 18.31 18.78 19.09 17.00 15.12 22:41 17.56 1600 12.12 Dividends per share of SBUX 100 Shares Div eartungs from SBUX . 1.941 13.28 Dividends per share of KO 100 shares Div earungs from KO S 194 Step 3: Total Retum Percentage for Holding Period 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 2-Oct-00 1-Sep-00 1-Aug-00 3-Jul-00 1 Jun-00 1-May-10 3-Apr-00 1-Mar-00 1-Feb-00 3.Jan-00 1-Dec 99 1-Nov-99 1-Oct-99 1-Sep-99 2-Aug-99 1-J199 1-Jun-99 3 May-99 1-Apr 99 1-Mar-99 1-Feb-99 4-Jan 99 1-Dec-98 2-Nov-98 1-Oct-98 1-Sep-98 3-Aug-98 1-Jul-98 1.Jun 98 1-May-98 Apr 98 2-Mar-98 2 Feb.98 2-Jan-98 1-Dee 97 3. NOV-97 59.06 53.93 5133 59.79 56.01 51 88 45.93 45.62 47.09 55.62 56.41 65.18 5700 4661 57.61 58.34 5972 63.82 65.40 $8.98 61222 62.60 6422 67.13 64.62 55.12 62.14 76 81 SL58 14 61 2.26 35 65.22 104 338 59.40 A 1359 12.39 11:44 11.62 18.78 18:44 18.47 14.03 13.22 13.02 14.03 1103 10.84 9.05 789 10:47 SBUX cost (pnce X 100) SBUX capital appreciation SBUX dividends SBUX cap. app. + div. Total rehim(CAD) cost 500 $ 1,031 S 531 S 1,562 B KO cost (price X 100) KO capital appreciation S 1,968 KO dividends ($4.91 per share). S 494 KO cap app. div S.1 2.462 Total return (CAD) cost 13.36 12:00 12.13 11.33 9.89 For the 6 years and Il months you and your sister held your stocks, your stock retum was and your sisters was V14 2:19 F G H Step 4. One Year Total Retum Percentage D 8.25 10.45 1005 10.23 S2,031 S 1.804 9.23 4 73 74 75 76 77 78 79 80 81 82 B3 34 35 36 37 38 19 SBUX price on Jul 021100 SBUX price on Jul 01 100 SBUX dividends capital appreciation SBUX cap. app. + div. TR-(CA D/pnce Juli #NAME? B 1-Oct-97 2-Sep-92 1-Aug-97 1-Jul-97 2 Jun-97 1-May-97 1. Apr.97 3-Mar-97 3.Feb-97 2. Jan-97 2-Dec-96 1-Nov-96 1-Oct-96 3-Sep-96 1-Aug-96 1-Jul-96 3. Jun 96 1 May-96 1. Apr-96 1-Mar-96 1.Feb.96 Jan-96 1-Dec-95 | Nov.95 2.Oct 95 1 Sep 05 1-Aug-95 C 100 5285 3402 6539 64.33 64.67 60.07 52.63 57.46 51.52 49 57 48.16 4745 47.81 46.87 43.94 45 93 13.01 38 10 38.68 37.63 35.13 34.60 35.30 33.40 32.06 29.75 2188 242 141 8.41 8.56 7.16 8,66 8.12 8.25 8.19 6.00 2.06 6.78 6.78 5183 4.41 4.19 0.25 5128 4.91 4.73 KO pnce on Jul 02-100 KO price on Jul 01 100 KO dividends (26 per sb) capital appreciation KO cap. app. div. TRKCAD/price Ju101 Question 1 Which stock did better over the holding penod? 4 5 Question 2 | Which stock did better over the last year? Question Are you surprised? 0 SBUN 2 Problem 2