How did your returns compare

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Reference no: EM13216651

You bought 100 shares of Starbucks Corp. (SBUX) 7 years ago (1Aug '95) for $5.00 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 brokerage fees)? Assume today is July 1, 2002 and Coke paid cumulative dividends of $4.94.

Data:   Monthly Closing Prices From March 1995 to July 2002 for Coca-Cola and Starbucks. 













Date KO SBUX







1-Jul-02 49.43 20.31
Step 1: Capital Appreciation



3-Jun-02 56.00 24.85







1-May-02 55.35 24.28
A. Price you received today  

1-Apr-02 55.30 22.82

Price you paid 
 

1-Mar-02 52.07 23.13


Difference   

1-Feb-02 47.02 23.01


* 100 shares  

2-Jan-02 43.41 23.77







3-Dec-01 46.78 19.05

In 1995 you spent $500 for 100 shares of SBUX.

1-Nov-01 46.59 17.72

Today, when you sold them, your capital appreciation

1-Oct-01 47.33 17.12

        is valued at ==>  


4-Sep-01 46.31 14.94







1-Aug-01 48.11 16.87
B. At the same time your sister bought 100 shares of 

2-Jul-01 44.08 18.04

Coca Cola.  What was her stock's capital appreciation?

1-Jun-01 44.48 23.00







1-May-01 46.67 19.52

Price she received today  

2-Apr-01 45.48 19.35

Price she paid 
 

1-Mar-01 44.46 21.22


 Difference  

1-Feb-01 52.02 23.81


* 100 shares  

2-Jan-01 56.90 24.97

Today, when she sold them, her capital appreciation

1-Dec-00 59.78 22.12

        is valued at ==>  


1-Nov-00 61.44 22.78







2-Oct-00 59.06 22.34
           

1-Sep-00 53.93 20.03







1-Aug-00 51.33 18.31
Step 2: Dividends
Dividends are given.

3-Jul-00 59.79 18.75







1-Jun-00 56.01 19.09
A. Dividends per share of SBUX 0

1-May-00 51.88 17.00


* 100 shares  

3-Apr-00 45.93 15.12

Div earnings from SBUX  $          -  

1-Mar-00 45.62 22.41







1-Feb-00 47.09 17.56







3-Jan-00 55.62 16.00







1-Dec-99 56.41 12.12
B. Dividends per share of KO 4.94

1-Nov-99 65.18 13.28


* 100 shares  

1-Oct-99 57.00 13.59

Div earnings from KO  

1-Sep-99 46.61 12.39
           

2-Aug-99 57.61 11.44







1-Jul-99 58.34 11.62
Step 3: Total Return Percentage for Holding Period

1-Jun-99 59.72 18.78







3-May-99 65.82 18.44
A. SBUX cost (price X 100)  

1-Apr-99 65.40 18.47

SBUX capital appreciation  $          -  

1-Mar-99 58.98 14.03

SBUX dividends
 $          -  

1-Feb-99 61.22 13.22

SBUX cap. app. + div.  $          -  

4-Jan-99 62.60 13.02

Total return = (CA + D) / cost  

1-Dec-98 64.22 14.03







2-Nov-98 67.15 11.53







1-Oct-98 64.62 10.84
B. KO cost (price X 100)  

1-Sep-98 55.12 9.05

KO capital appreciation  $          -  

3-Aug-98 62.14 7.89

KO dividends ($4.94 per share)  $          -  

1-Jul-98 76.81 10.47

KO cap. app. + div.
 $          -  

1-Jun-98 81.58 13.36

Total return = (CA + D) / cost  

1-May-98 74.64 12.00







1-Apr-98 72.26 12.03
For the 6 years and 11 months you and your sister held your

2-Mar-98 73.75 11.33
stocks, your stock return was      and your

2-Feb-98 65.22 9.89
sister's was   =>  



2-Jan-98 61.54 9.14







1-Dec-97 63.38 9.59
           

3-Nov-97 59.40 8.72







1-Oct-97 53.70 8.25
Step 4: One Year Total Return Percentage


2-Sep-97 57.85 10.45







1-Aug-97 54.22 10.25
A. SBUX price on Jul 02*100  

1-Jul-97 65.39 10.23

SBUX price on Jul 01*100  

2-Jun-97 64.33 9.73

SBUX dividends
 

1-May-97 64.67 7.88


capital appreciation  

1-Apr-97 60.07 7.47

SBUX cap. app. + div.  

3-Mar-97 52.63 7.41

TR = (CA + D) / price Jul01  

3-Feb-97 57.46 8.41







2-Jan-97 54.52 8.56







2-Dec-96 49.57 7.16
B. KO price on Jul 02*100  

1-Nov-96 48.16 8.66

KO price on Jul 01*100  

1-Oct-96 47.45 8.12

KO dividends (.76 per sh)  

3-Sep-96 47.81 8.25


capital appreciation  

1-Aug-96 46.87 8.19

KO cap. app. + div.
 

1-Jul-96 43.94 6.50

TR = (CA + D) / price Jul01  

3-Jun-96 45.93 7.06
           

1-May-96 43.01 6.78







1-Apr-96 38.10 6.78
Question 1.   Which stock did better over the holding period?

1-Mar-96 38.68 5.83

 




1-Feb-96 37.63 4.41







2-Jan-96 35.13 4.19
Question 2.   Which stock did better over the last year?

1-Dec-95 34.60 5.25

 




1-Nov-95 35.30 5.28







2-Oct-95 33.40 4.91
Question 3.   Are you surprised?



1-Sep-95 32.06 4.73

 




1-Aug-95 29.75 5








KO SBUX






                     

Reference no: EM13216651

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