{"id":154,"date":"2006-03-29T18:44:12","date_gmt":"2006-03-29T23:44:12","guid":{"rendered":"http:\/\/devinreams.com\/2006\/03\/29\/msft-dividend-math\/"},"modified":"2006-03-29T18:44:12","modified_gmt":"2006-03-29T23:44:12","slug":"msft-dividend-math","status":"publish","type":"post","link":"https:\/\/wordpress.reams.me\/?p=154","title":{"rendered":"MSFT Dividend Math"},"content":{"rendered":"<p>On it&#8217;s face a <a href=\"http:\/\/microsoft.blognewschannel.com\/index.php\/archives\/2006\/03\/29\/microsoft-announces-9-cent-dividend\/\">9-cent dividend sounds pretty weak<\/a>&#8230;<\/p>\n<p>Quite the opposite is true in Microsoft&#8217;s case. We need to keep in mind how many shares will receive those 9-cents. So, if you don&#8217;t have the number of outstanding shares offhand that&#8217;s fine, we&#8217;ll do some quick math.<\/p>\n<p>Looking at <a href=\"http:\/\/finance.google.com\/finance?q=microsoft&#038;btnG=Search\">Google Finance<\/a> tells me that Microsoft&#8217;s market cap is $279.21 billion. &#8216;Market cap&#8217; means market capitalization&#8230; which means &#8216;how much the company is worth&#8217;. Naturally, public company&#8217;s worth is based on their stock.<\/p>\n<p>So, since we have Microsoft&#8217;s market cap we know that it&#8217;s calculated by taking the number of outstanding shares and multiplying it by the stock price.<\/p>\n<p align=\"center\">Market Cap = Number of Shares x Price Per Share<\/p>\n<p>Since we have 2 of the 3 numbers (market cap and price per share) we can essentially solve for the number of shares:<\/p>\n<div align=\"center\">279.21 = 27.02x, <em>or<\/em>279.21\/27.02 = Number of Shares<\/div>\n<p>So, Microsoft has over <strong>10 billion shares<\/strong> outstanding. We can then multiply that by our dividend of .09 and we realize that a whopping $900,000,000 will be returned to shareholders. It&#8217;s all about how you present these things. Which headline is more captivating:<\/p>\n<p align=\"center\">Microsoft announces 9-cent dividend, <em>or<\/em><\/p>\n<p align=\"center\">Microsoft returns nearly $1 billion to investors<\/p>\n<p>As you can see, even a penny from Microsoft is certainly no minor thing. See kids? Accounting <em>can<\/em> be fun!<\/p>\n<p>PS: Gates holds a little over a billion shares. He&#8217;ll be receiving a check for a mere $92,474,940.24.<\/p>\n<p>[tags]accounting, microsoft, dividend, money[\/tags]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On it&#8217;s face a 9-cent dividend sounds pretty weak&#8230; Quite the opposite is true in Microsoft&#8217;s case. We need to keep in mind how many shares will receive those 9-cents. So, if you don&#8217;t have the number of outstanding shares offhand that&#8217;s fine, we&#8217;ll do some quick math. Looking at Google Finance tells me that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9],"tags":[575],"class_list":["post-154","post","type-post","status-publish","format-standard","hentry","category-internet","tag-money"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/wordpress.reams.me\/index.php?rest_route=\/wp\/v2\/posts\/154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wordpress.reams.me\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wordpress.reams.me\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wordpress.reams.me\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wordpress.reams.me\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=154"}],"version-history":[{"count":0,"href":"https:\/\/wordpress.reams.me\/index.php?rest_route=\/wp\/v2\/posts\/154\/revisions"}],"wp:attachment":[{"href":"https:\/\/wordpress.reams.me\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wordpress.reams.me\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wordpress.reams.me\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}