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?

1) 6.03%
2) 8.12%
3) 10.25%
4) 12.50%

Answer 1

The percent yield on Anthony's stock is calculated by dividing the annual earnings by the total investment and then multiplying by 100. The calculation reveals that the percent yield is 6.03%, which is option 1).

Step-by-step explanation:

To calculate the percent yield on Anthony's stock in Chambers Translation, we need to divide the annual earnings by the total investment and then multiply by 100 to get the percentage. First, we need to determine the total investment by multiplying the number of shares owned by the purchase price per share. Then, we divide the annual earnings by this amount and multiply by 100.

Here's the calculation:

Total investment = 360 shares × $18.89/share
Annual earnings = $410.40

Percent yield = ($410.40 / (360 × $18.89)) × 100

Now let's do the math.

Total investment = $6,800.40
Percent yield = ($410.40 / $6,800.40) × 100 = 6.03%

Thus, the percent yield on Anthony's stock is 6.03%, which corresponds to option 1).