Assume today is 30th June 2017 and you have just been paid a dividend and...

80.2K

Verified Solution

Question

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.

image

FY 2010 06/30/2010 0.7 FY 2011 06/30/2011 0.84 FY 2012 06/30/2012 1.12 FY 2013 06/30/2013 1.37 In Millions of AUD except Per Share 12 Months Ending Dividends per Share Dividends per Share - 5 Yr Geo Growth Dividend Yield Dividend Payout Ratio Cash Dividend Coverage Dividends Paid Total Cash Preferred Dividends Total Cash Common Dividends Trailing 12M Preferred Dividends Trailing 12M Common Dividends Trailing 12M Dividends Per Share 1.5634 49.9374 2.0025 -25.9 0.0 69.8 0.0 69.8 0.7 3.7003 60.0536 1.6652 -79.9 0.0 84.0 0.0 84.0 0.84 FY 2017 06/30/2017 1.39 4.4141 3.577 60.8399 1.6437 -138.3 4.7015 56.008 1.7855 -89.0 0.0 112.1 0.0 112.1 1.12 FY 2014 06/30/2014 1.52 76.0031 3.2846 73.879 1.3536 -146.8 0.0 152.9 0.0 152.9 1.52 2.9748 55.9101 1.7886 -1 17.3 0.0 137.6 0.0 137.6 1.37 FY 2015 06/30/2015 1.52 16.7748 4.4562 59.7343 1.6741 -153.1 0.0 153.3 0.0 153.3 1.52 FY 2016 06/30/2016 1.52 12.5934 4.9715 62.7218 1.5943 -158.4 0.0 153.4 0.0 153.4 1.52 0.0 140.4 0.0 140.4 1.39

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students