First you must find a company that has provided dividends. Describe the company succinctly. For the return
Question:
First you must find a company that has provided dividends. Describe the company succinctly. For the return on investment consider that you(hypothetically) bought stock five years ago and sold today. You obviously need the purchase and selling price. You also need the dividends and you must consider the time value of the cash flow. You may choose between a DCF type of methodology and the technique of investing dividends in a savings account. In the former you work out the IRR of the cash flows. For the latter, accrue interest on the dividends and add their future value to the share’s selling price. Work out the average annual return on investment.You have to assume all financial figures.
Essentials of Contemporary Management
ISBN: ?978-0077439477
5th edition
Authors: Gareth Jones, Jennifer George