| % of interest on Halifax shares [message #386486] |
Di, 09 Mai 2006 00:57 |
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Hi, in 1997 when the Halifax demutualised I got 200 shares. Then they bought
some back then, I decided to take my dividends in shares so now I have 209
Halifax shares. In 1997 they were worth, I think, 714.50p each or £1429 and
today they are worth 961p each or £2008.49. So supposing I had taken the
cash and put it in a bank account what sort of interest rate would I have
had to get to get £2008.49 from £1429?
Or if I had put the money in an PEP/ISA would I have more money?
Thanks Ron, who is thinking of selling the shares and doing just that.
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| Re: % of interest on Halifax shares [message #386487 ] |
Di, 09 Mai 2006 09:49 |
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Assuming 9 years then
If r is the annual rate then
2008.49 = (1 + r) ^ 9 * 1429
solving for r gives r = 3.855%
Andy
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| Re: % of interest on Halifax shares [message #386489 ] |
Di, 09 Mai 2006 10:56 |
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AndyColeman wrote:
> Assuming 9 years then
>
> If r is the annual rate then
>
> 2008.49 = (1 + r) ^ 9 * 1429
>
> solving for r gives r = 3.855%
Yes, net of tax, if interest is paid annually. That's 4.82% gross.
Or 4.735% gross nominal (4.84% AER) if interest is paid monthly.
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| Re: % of interest on Halifax shares [message #386492 ] |
Di, 09 Mai 2006 13:36 |
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In message <1147160960.179559.305520 [at] u72g2000cwu.googlegroups.com>,
AndyColeman <junk [at] andy-coleman.co.uk> writes
>Assuming 9 years then
>
>If r is the annual rate then
>
>2008.49 = (1 + r) ^ 9 * 1429
>
>solving for r gives r = 3.855%
Dont forget to add in the dividends.
--
John Boyle
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| Re: % of interest on Halifax shares [message #386493 ] |
Di, 09 Mai 2006 14:52 |
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I think he took the dividends as shares and thus the total includes the
extra dividends.
Actualy now I think about it I would need to take into account when the
extra shares were handed out. So the actual percentage would be
slightly higher.
Andy
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| Re: % of interest on Halifax shares [message #386494 ] |
Di, 09 Mai 2006 14:52 |
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In message of Tue, 9 May 2006, john boyle writes
>In message <1147160960.179559.305520 [at] u72g2000cwu.googlegroups.com>,
>AndyColeman <junk [at] andy-coleman.co.uk> writes
>>Assuming 9 years then
>>
>>If r is the annual rate then
>>
>>2008.49 = (1 + r) ^ 9 * 1429
>>
>>solving for r gives r = 3.855%
>Dont forget to add in the dividends.
The OP said that dividends were re-invested and therefore included in
the current value. But what has been forgotten in the calculations is
the return on capital a few years ago, although mentioned by the OP I
don't think the value of the cash received was mentioned or included in
the calculations.
David
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| Re: % of interest on Halifax shares [message #386495 ] |
Di, 09 Mai 2006 14:59 |
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> Thanks Ron, who is thinking of selling the shares and doing just that.
Past performance is not a guide to future performance - or summit like that
:-)
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| Re: % of interest on Halifax shares [message #387011 ] |
Di, 16 Mai 2006 00:49 |
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On Mon, 08 May 2006 22:57:05 GMT, "ron" <ron [at] flymail.fm> wrote:
>Hi, in 1997 when the Halifax demutualised I got 200 shares. Then they bought
>some back then, I decided to take my dividends in shares so now I have 209
>Halifax shares. In 1997 they were worth, I think, 714.50p each or £1429 and
>today they are worth 961p each or £2008.49. So supposing I had taken the
>cash and put it in a bank account what sort of interest rate would I have
>had to get to get £2008.49 from £1429?
>Or if I had put the money in an PEP/ISA would I have more money?
For the benefit of others, the cash flow looks like:
02 Jun 97 200 shares Cost £0.00, Value 735.5p/share = £1,471
01 Jun 99 Cash return, £0.62 per share, £124 returned
01 Jun 99 Share consolidation, 200 shares become 180 shares.
Today 209 shares, value £2,008.49
An XIRR calculation on Excel gives 4.49%
--
Terry Harper
URL: http://www.btinternet.com/~terry.harper/
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