you bought 100 shares of starbucks corp. (sbux) 7 years ago (1aug\'95) for $5.90
ID: 2644649 • Letter: Y
Question
you bought 100 shares of starbucks corp. (sbux) 7 years ago (1aug'95) for $5.90 per share and sold the 100 shares today for $20.31 each. what are your returns? at the same time your sister bought 100 shares of coca- cola (ko). how did your returns compare (excluding brokage fees)? assume today is july 1, 2002 and coke paid cumulative dividends if $4.94. you bought 100 shares of starbucks corp. (sbux) 7 years ago (1aug'95) for $5.90 per share and sold the 100 shares today for $20.31 each. what are your returns? at the same time your sister bought 100 shares of coca- cola (ko). how did your returns compare (excluding brokage fees)? assume today is july 1, 2002 and coke paid cumulative dividends if $4.94.Explanation / Answer
Calculation of Return:
Selling Price = $20.31 x 100 = $2,031, Purchase Price = $5.90 x 100 = $590
Return = 2,031 - 590 = $1,441
Return in % = 1,441 / 590 = 244.24%
Return on Coca Cola Share = 4.94 x 100 = $494
My return is of Capital Gain on the Sale of Stock while the return received by my sister is in the form of Dividend which she will continue to receive in Future. While my return is a one time return.
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