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Marvin buys 6000 shares of Cella, Inc. at a price of $92 and enrolls in the DRIP. The stock pays an annual dividend of $2.75
Marvin buys 6000 shares of Cella, Inc. at a price of $92 and enrolls in the DRIP. The stock pays an annual dividend of $2.75 in the first year and raises dividends 4% annually. The stock price stays at $92 the first year and increases 8.5% annually.
A. How many shares will Marvin have at the end of 2 years?
B. What would be his HPR if he sold at the end of 2 years?
C. What would be his HPR at the end of 2 years if had not been in the DRIP and received cash dividends?
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