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In January 2003 Microsoft announced that it would begin paying a dividend of $0.21 per share. Given the following share prices for Microsoft stock in the recent past how would a constant dividend

In January 2003, Microsoft announced that it would begin paying a dividend of $0.21 per share. Given the following share prices for Microsoft stock in the recent past, how would a constant dividend of $0.21 per share per year have changed the company's return to its shareholders oer this period?

First day of trading Closing share price

1998 (January 2)

$131.13
1999 (January 4) $141.00
2000 (January 3) $116.56
2001 (January 2)

$43.38

2002 (January 2) $67.04
2003 (January 2) $53.27

Calculate the shareholder return for EACH period without and with dividend below.

Apr 02 2020 View more View Less

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