Stocks Cost Per Share
HELP! Kendra owns 90 shares of Allegheny Energy for which she paid $41.56 per share. The company paid….?
annual dividends of $1.72 per share. What is the annual yield?
2) Mario owns 200 shares of Asset Investment Corporation for which he paid $32.75 per share. The brokers commission was $19.95 or 2 cents per share over 1,000. Asset investment paid a $5.00 per share dividend. What was the annual yield?
Cost of stock = number of shares * cost per share
total paid = cost of stock + commission
annual yield = annual dividend per share / cost per share
yield = 1.72/41.56 x 100 = 172/41.56 = 4.1386%
2) yield = 5/32.77 x 100 = 15.258%
Stock Market Tutorial #4 Financial Basics