Question
You bought 100 shares of GE stock for $40 per share one year ago. GE paid $1 dividend per share 6 months ago. Immediately following
You bought 100 shares of GE stock for $40 per share one year ago. GE paid $1 dividend per share 6 months ago. Immediately following the dividend payments, GE was trading at $50 per share. Today, GE stock is trading at $60 per share.
1.) Suppose you held the dividend payment in cash. What is your return during the year?
2.) Suppose you reinvested your dividend in GE stock. What is your return during the year?
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Principles Of Project Finance
Authors: E. R. Yescombe
2nd Edition
0123910587, 9780123910585
