Mr. Massie
NAME: _________________________
PURPOSE: This assignment should help determine the effects of cash dividends and
stock splits or stock dividends on stock values and returns.
a. Put your birth date (month/day/year) here
____/____/ ______
b. Choose a major Cdn. Corporation (the stock must trade on the Toronto
Stock Exchange (see
ctory&Language=en&Market=T) that begins with the same letter as the
first letter of your last name. You will have to look up the symbol for the
company using the link above) Identify your choice here:
THE STORY: On December 31 of the year you were born, a relative gave you 100 shares
of the common stock you chose (if you can not find data that far back then assume the
stock was purchased 5 years ago on your birthday). These 100 shares and the market
price 5 years ago are the basis of this assignment.
1. What was the market value of the 100 shares on your birthday 5 years ago? (Show
your calculations.) Where did you get this information? (include source, date, and
page number, web address if
2. You or your parents have held this stock from this day until December 31, 2013,
when you sold it.
a. How many shares did you own on December 2014? ____________ To
determine this answer, you will have to learn if the stock split, paid stock
dividends or spun off any subsidiaries during the period you owned it. Go
investigate. List everything you find on an attached sheet with the
Mr. Massie
reference(s) you used, and compute your shareholdings on 12/31/2014.
(place the answer on the line above). You will most likely find this
information on the company’s web site under an ‘Investor Relations’
section. You may have to read through the Annual and Quarterly Reports
to find the answer (this is not an easy task but certainly do-able at a grade
12 level).
b. What was the market price per share on your stock on December 31,
2014? $___________________ (use the Toronto Stock Exchange web site
for this)
c. Compute the value of your stock on December 31, 2014. $ ____________
(price per share X number of shares).
d. Determine the gain or loss on the stock for the 5 year period (use your
birthday 5 years ago and the price this last December (December 31,
2014). $________________ (answer in part c minus answer in part 1)
e. What dividends were declared and paid per share during 2014? (be
careful: the amount declared may be different than the amount paid.)
Declared $ _______________
Paid $ ___________________
What was your dividend income for the year? $ _______________