Assume today is 30th June 2017 and you have just been paid a dividend and...
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Accounting
Assume today is 30th June 2017 and you have just been paid a dividend and that the next dividend will be received in exactly one year (assume dividend is paid annually). The stock price as at 30th June 2017 was $38.30.
Now assume you bought this share two years ago:
(1). If you bought share in the company on the 1st July 2015 at $34 and the share price exactly one year ago was $31, what is your capital gain per share today?
(2). Use the information in (1), if you reinvested the dividends you received in more FLT shares, what is your wealth on 30th June 2017 on a per share basis? Assume that you have bought 1000 shares.