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your portfolio is 270 shares of inc the stock currently sells for 97 per share tye...

your portfolio is 270 shares of inc the stock currently sells for 97 per share tye company has announced a dividend of 2.80 per share with an ex dividend date of april 10 assuming no taxes, what is your portfolio as of april 19
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Answer #1

With no taxes we would expect the stock price to drop by exactly the amount of the dividend, so the new stock price will be:

New stock price = $97.00 – $2.80 = $94.20

Your total stock investment will be worth:Stock value = 270 x $94.20 = $25,434

Your total portfolio value will be the total stock value plus the dividends received, so:

Portfolio value = $25,434 + (270 × $2.80) = $26,190

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