Question

Frances bought 144 shares of Dwyn Horticulture for $7.73 apiece. Her broker charged her a commission of $46.15 for the purchase. If the yearly dividend on Dwyn Horticulture is 61 cents per share, what is the annual yield on Frances’s stock?

Answer 1

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Explanation:

Answer 2

Answer to this question is 0.0758

Explanation:

Given:

Number of shares = 144

Price of one share = $7.73

Commission charged by broker= $46.15

Total amount spent by company=144 * 7.73 + 46.15 =$1159.27

Dividend per share = 61 cents.

Since total amount is in dollars we convert this to dollar too.

$1= 100 cents

Therefore, 61 cents= $0.61

Annual dividend = dividend per share * total number of share

= 0.61 * 144

Annual yield= Annual dividend / Share price

= 0.61 * 144 / 1159.27

=0.07577

= 0.0758 ( approx.) which is the answer