Fed Financial
Financial help?
I have a project to do with Starbucks stock from Oct 1 1998-2007. It ask to calculate annual rate of return if i have held one share of common stock. during the 10yr periods. Each year i have to calculate the annual return. I check out from Oct 1 1998 to 2007. I found out that they have some stock split during 1999, 2001, 2005. So does it affect my calculation.
Public Comments
- You will have to see what factors the splits were like was it 1 share for 2? (1:2) or was it one share for 4? (1:4). If it was a 1:2 split then instead of owning just one share from that point forward you would own 2, and then later if there was a 1:4 split, then you would own 8 shares from that day forward. Knowing how many shares you have is useful in determing the market value of the investment. 8 shares x $24.58 = $196.64, versus 1 share x $24.58 = $24.58
- Easy solution is to go to Yahoo Finance historical prices and use the right hand most column labeled "adjusted close" which provides automatically the adjustments for splits . If you need to provide your intermediate work, the splits occurred on the following dates (within your range): 24-Oct-052 : 1 Stock Split 30-Apr-012 : 1 Stock Split 22-Mar-992 : 1 Stock Split Consequently, if you had 100 shares of SBUX at the beginning of the period, you now have: 100 X 2 X 2 X 2 or 800 shares. Either divide the initial cost by 8, or multiply today's price by 8 in order to determine the value. Good luck. Hope that helps!
