QUESTION 4 (15%) On March 13, 1986, Microsoft issued over 3 million shares at an issue price of $21 per share. By doing so, it raised $61 million during its Initial Public Offering (I.P.O.). It closed most recently at approximately $135 per share. Since going public, Microsoft stock has split nine (9) times and began paying a dividend in 2003. The specifics of each split and annual dividend are identified below: Stock Splits 09/1987 2:1 04/1990 2:1 06/1991 3:2 06/1992 3:2 Dividend Schedule 2003 $0.24 per share 2004 S3.16 per share 2005 S0.32 per share 2006 S0.28 per share 2007 $0.14 per share 2008 S0.24 per share 2009 $0.52 per share 2010 S0.55 per share 2011 $0.68 per share 2012 S0.83 per share 2013 $0.97 per share 2014 S1.15 per share 2015 S1.29 per share 2016 S1.47 per share 2017 S1.56 per share 2018 S1.68 per share 2019 $1.84 per share 05/1994 2:1 12/1996 2:1 02/1998 2:1 03/1999 2:1 02/2003 2:1 I That is, two shares in exchange for one share as represented by the nomenclature 2:1 and three shares in exchange for two shares as represented by "3:2" During this period, the 30-year U.S. Treasury Bill interest rate averaged approximately 6% . Considering all years as full years, and that dividends paid are a part of the return of a stock, determine the TOTAL PROJECTED Rate of Return of the investment in Microsoft