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Question: “You Buy The Stock Of Four Consumer Goods Companies In March 2014 And Hold Them For Five Years Until March 2019. Here Are The TRA (Total Return) Charts From Bloomberg For All Four Stocks. The “”Buy Price”” In The Top Left- Hand Corner Is The Price You Paid For Each Stock. The Price Of The Stock In March 2019 Is Noted In The Chart’s Legend. The Legend Also …”

“You Buy The Stock Of Four Consumer Goods Companies In March 2014 And Hold Them For Five Years Until March 2019. Here Are The TRA (Total Return) Charts From Bloomberg For All Four Stocks. The “”Buy Price”” In The Top Left- Hand Corner Is The Price You Paid For Each Stock. The Price Of The Stock In March 2019 Is Noted In The Chart’s Legend. The Legend Also …”

You buy the stock of four consumer goods companies in March 2014 and hold them for five years until March 2019. Here are the

A) Unilever

B) Colgate-Palmolive

C) Kimberly-Clark

D) Church & Dwight

CL US $ 166.92 +0.66 wow N66.92 /66.93N 313x7 … At 16:15 d Vol 2.295.581 0 66.612 H 67.31Z L 66.47D Val 153.754M CL US Equi

KMB US $_123.08 +1.17 N123.06 /123.09N 3X85 … At 16:15 d Vol 1,060.761 O 122.28 N H 124.10D L 122.22K Val 130.679M KMB US E

UNA NA € 1 51.66 +0.62 a. At 12:35 d Vol 3,167,512 0 51.18A UNA NA Equity 1 Settings Buy Date 03/14/2014 Sell Date 03/15/2019

CHD US $ 1 68.77 +0.76 mm N68.76/68.77N 42 x97 At 16:15 d Vol 1,545,046 0 68.45N H 69.54D L 68.3292D Val 106.589M CHD US Equi

You buy the stock of four consumer goods companies in March 2014 and hold them for five years until March 2019. Here are the TRA (Total Return) charts from Bloomberg for all four stocks. The “Buy Price” in the top left- hand corner is the price you paid for each stock. The price of the stock in March 2019 is noted in the chart’s legend. The legend also states the Dividend Adjusted Value of the stock in March 2019, which is the value of the stock including reinvested dividends over the holding period. For which stock did the bulk of the total return come from dividends?
CL US $ 166.92 +0.66 wow N66.92 /66.93N 313×7 … At 16:15 d Vol 2.295.581 0 66.612 H 67.31Z L 66.47D Val 153.754M CL US Equity 1) Settings Total Return Analysis Buy Date 03/14/2014 Sell Date 03/15/2019 Period Daily Buy Price 63.83 Sell Price 66.45 Shares 1000 Currency USD Total Dividends 7800.00 O Gross Net Holding Strategy Price Change Divs Reinvested In Security Shares Purchased Divs Reinvested At 2.4386% Reinvested Income 1M 3M 6M YTD 1Y 2Y 3Y SY 10Y Commission Cost Total Return 4.1047% 120.46 16.6447% 480.65 17.0776% Annual Eq Gain/Loss .8069% 2620.0000 3.1237% 10624.3257 3.2000% 10900.6548 Show Dividend Eve… MILY Track & Annotate Zoom Colgate-Palmolive Co Security Price (USD) 66.45 1. Dividend Adjusted Value 74.4543 Colgate-Palmolive Cumulative Total Return 16.6447 Low: 2876 2014 | 2015 2017 2018
KMB US $_123.08 +1.17 N123.06 /123.09N 3X85 … At 16:15 d Vol 1,060.761 O 122.28 N H 124.10D L 122.22K Val 130.679M KMB US Equity D) Settings Total Return Analysis Buy Date 03/14/2014 B S ell Date 03/15/2019 Period Daily Buy Price 109.660 Sell Price 118.935 Shares 10000 Currency USD 5 Adj. Price CACS » 105.1016 6) Adj. Shares | CAC… 1043.3711 Total Dividends 19358.25 O Gross Net 7) Commission Cost Holding Strategy Total Return Annual Eq Gain/Loss Price Change 13.1619% 2.5010% 14428.2037 Divs Reinvested In Security Shares Purchased 180.44 32.7391% 5.8212% 35888.9104 Divs Reinvested At 2.4509% Reinvested Income 1.12k 31.8441% 5.6783% 34907.7748 1M 3M 6M YTD 1Y 2Y 3Y 5Y10Y Show Dividend Eve. Kimberly-Clark Corp Security Price (USD) 118.935 Dividend Adjusted Value 139.5109 Пу Hi: 147.8673 WA Kimberly-Clark Cumulative Total Return 32.7391 … www Lowest 2014 2015 2016 2017 2018 2019
UNA NA € 1 51.66 +0.62 a. At 12:35 d Vol 3,167,512 0 51.18A UNA NA Equity 1 Settings Buy Date 03/14/2014 Sell Date 03/15/2019 B Buy Price 27.72 Sell Price 50.15 A51.66 51.67A 64733 x6046 H 51.96A L 50.89A Val 163.573M Total Return Analysis Period Daily Shares 1000 Currency EUR – Total Dividends 6611.20 O Gross Net 7 Commission Cost Holding Strategy Total Return Price Change 80.9163 Divs Reinvested In Security Shares Purchased 173.33 112.2747% Divs Reinvested At 0.0000% Reinvested Income N.A. 104.7662% 1M 3M 6M YTD 1Y 2Y 3Y 5Y10Y Annual Eq Gain/Loss 12.5743% 22430.0000 16.2273% 31122.5379 15.3941% 29041.2000 Show Dividend Eve… Hi: 58.8425 Unilever NY Security Price (EUR) 50.15 Dwvidend Adjusted Value 58.8425 Hier 55 Unilever Low: 27.72 Low: 27.72 Cumulative. Total Return 112.2747 300 LOTO,00 2016T 2015 2016 T 202 T 2018 T
CHD US $ 1 68.77 +0.76 mm N68.76/68.77N 42 x97 At 16:15 d Vol 1,545,046 0 68.45N H 69.54D L 68.3292D Val 106.589M CHD US Equity 1) Settings Total Return Analysis Buy Date 03/14/2014 B Sell Date 03/15/2019 Period Daily Buy Price 68.38 Sell Price 67.13 Shares 1 0000 Currency USD – 5) Adj. Price CACS >> 34.19 6 Adj. Shares CACS. 2000.0000 Total Dividends 7405.00 O Gross Net 7) Commission Cost — Holding Strategy Total Return Annual Eq Gain/Loss Price Change 96.3440% 14.4299% 65880.0000 Divs Reinvested In Security Shares Purchased 166.82 112.7208% 16.2760% 77078.5108 Divs Reinvested At 2.4509% Reinvested Income 427.99 107.7990% 15.7335% 73712.9881 1M 3M 6M YTD 1Y 2Y 3Y 5Y10Y Show Dividend Eve… Church & Dwight Co Inc Hi: 74.6862 Security Price (USD) 67.13 Dividend Adjusted Value 72.7293 Jason 70 WW Church & Dwight ww 60 Low: 32.09 Low: 32.2369 Cumulative Total Return 112.7208 100 50 12V PO 2018

Expert Chegg Question Answer:

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Smart Teacher

To find out which of the above stocks have the bulk of the total return from the dividend payout, the ratio of dividend adjusted value to security price must be highest.

Colgate Palmolive

Ratio = (74.45/66.45) = 1.12

Kimberly Clark

Ratio = (139.5109/118.935) = 1.173

Unilever

Ratio = 58.8425/50.15 = 1.1733

Church and Dwight

Ratio = (72.7293/67.13) = 1.08

As Unilever has the highest ratio, the answer is

A) Unilever

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