ABC stock price was about $61 in Dec. 2011, $73 in Dec. 2012, $45 in Dec. 2013, and $57 in Dec. 2014. Its historical div

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answerhappygod
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ABC stock price was about $61 in Dec. 2011, $73 in Dec. 2012, $45 in Dec. 2013, and $57 in Dec. 2014. Its historical div

Post by answerhappygod »

ABC stock price was about $61 in Dec. 2011, $73 in Dec. 2012,
$45 in Dec. 2013, and $57 in Dec. 2014. Its historical dividend was
about $1.76 per share annually.
Let's assume you, as a stock investor, have done the following
transactions:
a) bought 5,000 shares in Dec. 2011;
b) collected the dividends ($1.76 per share) on your shares one
year later, and then sold 3,000 shares in Dec. 2012;
c) collected the dividends ($1.76 per share) on your remaining
shares one year later, and then bought another 2,000 shares in Dec.
2013;
d) collected the dividends ($1.76 per share) on your remaining
shares one year later, and then sold all your remaining shares in
Dec. 2014.
1. What is the payback years amount for your stock
investment?
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