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. |
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Date |
KO |
SBUX |
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1-Jul-02 |
49.43 |
20.31 |
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Step 1: Capital Appreciation |
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3-Jun-02 |
56.00 |
24.85 |
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1-May-02 |
55.35 |
24.28 |
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A. |
Price you received today |
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1-Apr-02 |
55.30 |
22.82 |
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Price you paid |
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1-Mar-02 |
52.07 |
23.13 |
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Difference |
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1-Feb-02 |
47.02 |
23.01 |
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* 100 shares |
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2-Jan-02 |
43.41 |
23.77 |
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3-Dec-01 |
46.78 |
19.05 |
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In 1995 you spent $500 for 100 shares of SBUX. |
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1-Nov-01 |
46.59 |
17.72 |
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Today, when you sold them, your capital appreciation |
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1-Oct-01 |
47.33 |
17.12 |
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is valued at ==> |
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4-Sep-01 |
46.31 |
14.94 |
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1-Aug-01 |
48.11 |
16.87 |
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B. |
At the same time your sister bought 100 shares of |
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2-Jul-01 |
44.08 |
18.04 |
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Coca Cola. What was her stock's capital appreciation? |
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1-Jun-01 |
44.48 |
23.00 |
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1-May-01 |
46.67 |
19.52 |
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Price she received today |
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2-Apr-01 |
45.48 |
19.35 |
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Price she paid |
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1-Mar-01 |
44.46 |
21.22 |
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Difference |
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1-Feb-01 |
52.02 |
23.81 |
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* 100 shares |
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2-Jan-01 |
56.90 |
24.97 |
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Today, when she sold them, her capital appreciation |
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1-Dec-00 |
59.78 |
22.12 |
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is valued at ==> |
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1-Nov-00 |
61.44 |
22.78 |
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2-Oct-00 |
59.06 |
22.34 |
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1-Sep-00 |
53.93 |
20.03 |
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1-Aug-00 |
51.33 |
18.31 |
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Step 2: Dividends |
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Dividends are given. |
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3-Jul-00 |
59.79 |
18.75 |
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1-Jun-00 |
56.01 |
19.09 |
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A. |
Dividends per share of SBUX |
0 |
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1-May-00 |
51.88 |
17.00 |
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* 100 shares |
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3-Apr-00 |
45.93 |
15.12 |
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Div earnings from SBUX |
$ - |
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1-Mar-00 |
45.62 |
22.41 |
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1-Feb-00 |
47.09 |
17.56 |
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3-Jan-00 |
55.62 |
16.00 |
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1-Dec-99 |
56.41 |
12.12 |
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B. |
Dividends per share of KO |
4.94 |
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1-Nov-99 |
65.18 |
13.28 |
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* 100 shares |
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1-Oct-99 |
57.00 |
13.59 |
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Div earnings from KO |
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1-Sep-99 |
46.61 |
12.39 |
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2-Aug-99 |
57.61 |
11.44 |
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1-Jul-99 |
58.34 |
11.62 |
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Step 3: Total Return Percentage for Holding Period |
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1-Jun-99 |
59.72 |
18.78 |
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3-May-99 |
65.82 |
18.44 |
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A. |
SBUX cost (price X 100) |
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1-Apr-99 |
65.40 |
18.47 |
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SBUX capital appreciation |
$ - |
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1-Mar-99 |
58.98 |
14.03 |
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SBUX dividends |
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$ - |
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1-Feb-99 |
61.22 |
13.22 |
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SBUX cap. app. + div. |
$ - |
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4-Jan-99 |
62.60 |
13.02 |
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Total return = (CA + D) / cost |
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1-Dec-98 |
64.22 |
14.03 |
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2-Nov-98 |
67.15 |
11.53 |
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1-Oct-98 |
64.62 |
10.84 |
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B. |
KO cost (price X 100) |
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1-Sep-98 |
55.12 |
9.05 |
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KO capital appreciation |
$ - |
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3-Aug-98 |
62.14 |
7.89 |
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KO dividends ($4.94 per share) |
$ - |
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1-Jul-98 |
76.81 |
10.47 |
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KO cap. app. + div. |
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$ - |
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1-Jun-98 |
81.58 |
13.36 |
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Total return = (CA + D) / cost |
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1-May-98 |
74.64 |
12.00 |
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1-Apr-98 |
72.26 |
12.03 |
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For the 6 years and 11 months you and your sister held your |
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2-Mar-98 |
73.75 |
11.33 |
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stocks, your stock return was |
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and your |
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2-Feb-98 |
65.22 |
9.89 |
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sister's was => |
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2-Jan-98 |
61.54 |
9.14 |
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1-Dec-97 |
63.38 |
9.59 |
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3-Nov-97 |
59.40 |
8.72 |
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1-Oct-97 |
53.70 |
8.25 |
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Step 4: One Year Total Return Percentage |
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2-Sep-97 |
57.85 |
10.45 |
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1-Aug-97 |
54.22 |
10.25 |
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A. |
SBUX price on Jul 02*100 |
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1-Jul-97 |
65.39 |
10.23 |
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SBUX price on Jul 01*100 |
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2-Jun-97 |
64.33 |
9.73 |
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SBUX dividends |
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1-May-97 |
64.67 |
7.88 |
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capital appreciation |
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1-Apr-97 |
60.07 |
7.47 |
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SBUX cap. app. + div. |
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3-Mar-97 |
52.63 |
7.41 |
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TR = (CA + D) / price Jul01 |
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3-Feb-97 |
57.46 |
8.41 |
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2-Jan-97 |
54.52 |
8.56 |
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2-Dec-96 |
49.57 |
7.16 |
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B. |
KO price on Jul 02*100 |
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1-Nov-96 |
48.16 |
8.66 |
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KO price on Jul 01*100 |
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1-Oct-96 |
47.45 |
8.12 |
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KO dividends (.76 per sh) |
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3-Sep-96 |
47.81 |
8.25 |
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capital appreciation |
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1-Aug-96 |
46.87 |
8.19 |
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KO cap. app. + div. |
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1-Jul-96 |
43.94 |
6.50 |
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TR = (CA + D) / price Jul01 |
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3-Jun-96 |
45.93 |
7.06 |
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1-May-96 |
43.01 |
6.78 |
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1-Apr-96 |
38.10 |
6.78 |
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Question 1. |
Which stock did better over the holding period? |
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1-Mar-96 |
38.68 |
5.83 |
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1-Feb-96 |
37.63 |
4.41 |
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2-Jan-96 |
35.13 |
4.19 |
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Question 2. |
Which stock did better over the last year? |
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1-Dec-95 |
34.60 |
5.25 |
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1-Nov-95 |
35.30 |
5.28 |
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2-Oct-95 |
33.40 |
4.91 |
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Question 3. |
Are you surprised? |
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1-Sep-95 |
32.06 |
4.73 |
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1-Aug-95 |
29.75 |
5 |
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KO |
SBUX |
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