If i bought 100 shares of coca-cola in 1988 january 1st how much would they be worth now. I think 123,552.00?

Question

dont forget the splits

Answer 1

If you bought in January 5th, 1988 it would have cost you $3.44 per share (adjusted for stock splits and dividends).

Today's price is $51.51 per share. So, you would have made about 1500%.

Since 1988, there were two stock split of 2-to-1, so normally, you should have 400 shares now worth $51.51 each. Therefore, your 1998 shares should be worth $20,604 in capital gains. Also, you should include dividends, more troubling to do. From Yahoo finance, the stocks yields about 2.9% per year. And there have been 20.5 years since january 1988. Dividends were $0.0375*3 = $0.1125 during 1988 and an expected $0.38*3 = $1.14 during 2008, which gives you a dividend annual growth rate of about 12%. Also, the stock price increased at a 14% rate annually (discount rate).

Therefore according to DDM: Value of stock on January 1988 was = 2.9%/(14% - 12%) = 1.45 times the price or $1.52/(14% - 12%) = $76 per share. The present value (future value of past price) of dividends is $76*(1.14)^20.5 = $1,062/ share or $106,200 for 100 shares (I use 100 shares because dividends are based on adjusted prices to splits)

Therefore the total value of your 100 coca cola 1988 shares is $106,200 + $20,604 = $126,804.

Dude, how did you come up with your number?

Answer 2

did you buy 100 shares of coca cola in january 1988?

Answer 3

100 shares on 1/1/88 would have cost you $3,988 (not including commissions).  Incorporating splits, that investment would be worth $49,911 today.  This is an average annual return of 13.5% - not too shabby.