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A comment on Microsoft Shares Soar to Record on Earnings Boost From Cloud. Parent comment

Re:Microsoft Shares Soar to Record on Earnings Boost From Cloud by jeffshek on Saturday October 22, 2016 @08:42AM (#12768435)
But you're compounding the 2.5% only with itself. If you had reinvested the dividend back into the stock (common), the return is higher than 48.5%.
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Re:Microsoft Shares Soar to Record on Earnings Boost From Cloud by pesenti on Saturday October 22, 2016 @11:49AM (#12769149)
No. 1.025^16=1.48 - that's the reinvestment scenario. What you describe, no reinvestment, is just 2.5%*16=40%.
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