Question

Stock in Chambers Translation cost $18.89 per share when Anthony bought it. He earns $410.40 per year from his 360 shares in Chambers Translation. What is the percent yield on Anthony’s stock? a. 6.03% b. 2.17% c. 0.0603% d. 0.0217%

Answer 1

the answer is A.6.03

Answer 2

The correct option is A.

Explanation:

Number of shares is 360. Total earnings from 360 shares is $410.40. Chambers Translation cost $18.89 per share when Anthony bought it.

Total cost of 360 shares is,

`360* 18.89=6800.4`

Yield on authority stock is

`Y=\frac{\text{Total Earning}}{\text{Total Cost}}* 100`

`Y=\frac{\text{410.40}}{\text{6800.4}}* 100=6.0349\approx 6.03`

Therefore option A is correct.