What are dividends? a. Interest paid on stocks. b. Gifts that companies send to stockholders. c. Stock certificates. d. A stockholder's share of the profits.
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Franked credits means the company has paid tax on the dividend declared, often 30% in the dollar, but can be other amounts, so if you are paying income tax of 30% in the dollar the dividends are tax free because the company has paid the tax.
1. Make sure the HP-12C is in compounding mode. Press STO-EEX repeatedly until a tiny "C" appears in lower right of display.
2. Make sure "BEGIN" is NOT shown in the display. If it is, press g-END.
3. Clear financial registers: f-FIN. (That is really the "f" key then kind of the "Clear FIN" key -- I'm sure you'll see it.)
4. Enter zero as "initial investment". CLx, then g-CF0. (You have to do this because the 12C actually computes the "NPV" as an excess or deficit over the entered "initial investment". By entering zero, you force the calculator to just give you the actual net present value.)
5. Your first cash flow is +2.00. So, enter 2.00, then press g-CFj.
6. Next cash flow: +2.10. Enter 2.1, then press g-CFj.
7. Last cash flow: +22.20 (the final value of the stock plus the last dividend payment). Enter 22.20, then press g-CFj.
8. Enter the 10% interest (a.k.a. discount) rate. Enter 10, then press "i".
9. Compute the NPV. Press g-NPV. The answer is indeed 20.23 (at least to two decimal places).
Welcome to the world of car repair! Would you please hear this? For the last many years, cars have been designed by people, but before being put into production, they are sent through a process with a computer where parts are designed to last only as long as the warranty, and that makes parts cost less, and the car makers and everyone involved can make more money. ( Read stockholders.)
Some many years ago, the president of GM, when addressing stockholders, said " We are not in the business to make cars, we are in the business to make money".
Were you to own another make vehicle, you would only experience a different set of problems. Sorry.
abc common stock paid 1.32 pesos in dividends last year and expected to grow 7% annually. Compute for the value of the stock with expected rate of return 11%.
Companies in this field may have been sold and/or consolidated many times since that certificate was issued so it may or may not have value.
We own shares in a Canadian mining company that is the current incarnation of several combined operations.
Check the certificate to see if there is an agent listed that originally was charged with the sale of the stock and see if they still exist.
It isn't real common that a company sells shares directly but often gives a percentage of the sale proceeds to an agent that has contacts interested in specific investment areas.
Here is a good article that deals with your quandry:
Old stock tips
Good luck; if you have good news sometime, post back here so we can celebrate with your <grin>
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