Error in start price calculation?
This bugs me. I have spent some time understanding how CAPS calculates a new start price every time a stock goes ex-dividend. In fact, I wrote a blog about it.
So I'm puzzled my the drop in my start price for PEP since I last updated my pitch for PEP on June 3rd.
My start price for PEP before June 1st was $59.76.
June 1st PEP went ex-dividend, and the opening price on ex-dividend day was $70.58. The dividend was $0.515.
1 / 1 + ($0.515/$70.58)... times $59.76 = $59.33.
I get that. It's easy, basic math.
The error is in my favor and all, but I want to know why my start price has dropped from $59.33 to $58.53 since the last time I looked on June 3rd.
PEP hasn't gone ex-dividend since then, and even if it did, it would drop the start price to something in the neighborhood of $58.90, give or take a penny or two.
Am I overlooking something, or is this an error in CAPS?