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.