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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 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.
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