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Q: Investment in Microsoft ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: Investment in Microsoft
Category: Business and Money
Asked by: rogersdan-ga
List Price: $2.00
Posted: 01 Nov 2004 17:46 PST
Expires: 01 Dec 2004 17:46 PST
Question ID: 423196
Current value of $1,000 invested in Microsoft in Jan of 1985?
Answer  
Subject: Re: Investment in Microsoft
Answered By: juggler-ga on 01 Nov 2004 18:10 PST
Rated:5 out of 5 stars
 
Hello.

Microsoft stock wasn't sold to the public until 1986.

If you had invested $1,000 in Microsoft at the offering price
of $21 per share on March 13, 1986 (the first day the stock was
traded), you would have initially owned 47 shares.

Because of 9 stock splits, each original Microsoft share has split
into 288 current shares.
See:
http://www.microsoft.com/msft/FAQ/faqstocksplit.mspx#2

Thus, you'd currently have 13,536 Microsoft shares.

Microsoft closed at $28 today.
http://finance.yahoo.com/q/ecn?s=msft

Thus, a $1,000 investment in Microsoft on March 13, 1986, would be
worth $380,090.88 today.


Microsoft also has some Excel spreadsheets that allow you do the calculations:
http://www.microsoft.com/msft/download/IPOsharecalc.xls
http://www.microsoft.com/msft/download/IPOROIcalc.xls
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search strategy:
microsoft investor relations

I hope this helps.
rogersdan-ga rated this answer:5 out of 5 stars

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