In 1970, Wal-Mart offered 300,000 shares of itscommon stock to the public at a price of $16.50 pershare. Since that time, Wal-Mart has had 11 twofor-one stock splits. On a purchase of 100 shares at$16.50 per share on the company’s first offering,the number of shares has grown to 204,800 sharesworth $15,767,500 in July 2014. What is the returnon investment for investors who purchased the stockin 1970 (over a 44-year ownership period)? Assumethat no dividends were received during that period
In 1970, Wal-Mart offered 300,000 shares of itscommon stock to the public at a price of $16.50 pershare. Since that time, Wal-Mart has had 11 twofor-one stock splits. On a purchase of 100 shares at$16.50 per share on the company’s first offering,the number of shares has grown to 204,800 sharesworth $15,767,500 in July 2014. What is the returnon investment for investors who purchased the stockin 1970 (over a 44-year ownership period)? Assumethat no dividends were received during that period
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 4CP
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In 1970, Wal-Mart offered 300,000 shares of its
common stock to the public at a price of $16.50 per
share. Since that time, Wal-Mart has had 11 twofor-one stock splits. On a purchase of 100 shares at
$16.50 per share on the company’s first offering,
the number of shares has grown to 204,800 shares
worth $15,767,500 in July 2014. What is the return
on investment for investors who purchased the stock
in 1970 (over a 44-year ownership period)? Assume
that no dividends were received during that period
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