Answer:
a= 163 shares worth 6,515.58 dollars
b= It purchase 43.5 shares
giving a total of 143.5 shares worth 71.634 each giving a net worth of $10,280.33861
c= It purchase 50.3 shares
giving a total of 150.3 shares worth 71.634 each giving a net worth of $10.766.88
Explanation:
We increase at 5% rate each year.
Principal 4,000.00 (100 shares x $40 each
time 10.00
rate 0.05000
Amount 6,515.58
Total shares after 10 years
6,515.58 / 40 = 162.8894627 = 163
If the price rise at 6% but dividends remains constant
Shares Dividends // Price // Shares purchased
1 100 200 42.4 4.717
2 104.717 209.434 44.944 4.66
3 109.377 218.754 47.641 4.592
4 113.969 227.938 50.5 4.514
5 118.483 236.966 53.53 4.427
6 122.91 245.82 56.741 4.333
7 127.243 254.486 60.146 4.232
8 131.475 262.95 63.754 4.125
9 135.6 271.2 67.58 4.014
10 139.614 279.228 71.634 3.898
TOTAL143.512 43.512
c)
150.304 x 71.634 = 10766.87674