A stock pays an annual dividend of $1.14 per share. Calculate the dividends paid to a shareholder who has 285 shares of the company's stock. Calculate the dividends paid to a shareholder who has 900 shares of a stock that is paying an annual dividend of $0.57 per share. (Round your answer to two decimal places.) Find the dividend yield for a stock that pays an annual dividend of $1.29 per share and has a current price of $49.475.
Dividend Valuation
Dividend refers to a reward or cash that a company gives to its shareholders out of the profits. Dividends can be issued in various forms such as cash payment, stocks, or in any other form as per the company norms. It is usually a part of the profit that the company shares with its shareholders.
Dividend Discount Model
Dividend payments are generally paid to investors or shareholders of a company when the company earns profit for the year, thus representing growth. The dividend discount model is an important method used to forecast the price of a company’s stock. It is based on the computation methodology that the present value of all its future dividends is equivalent to the value of the company.
Capital Gains Yield
It may be referred to as the earnings generated on an investment over a particular period of time. It is generally expressed as a percentage and includes some dividends or interest earned by holding a particular security. Cases, where it is higher normally, indicate the higher income and lower risk. It is mostly computed on an annual basis and is different from the total return on investment. In case it becomes too high, indicates that either the stock prices are going down or the company is paying higher dividends.
Stock Valuation
In simple words, stock valuation is a tool to calculate the current price, or value, of a company. It is used to not only calculate the value of the company but help an investor decide if they want to buy, sell or hold a company's stocks.
- A stock pays an annual dividend of $1.14 per share. Calculate the dividends paid to a shareholder who has 285 shares of the company's stock.
- Calculate the dividends paid to a shareholder who has 900 shares of a stock that is paying an annual dividend of $0.57 per share. (Round your answer to two decimal places.)
- Find the dividend yield for a stock that pays an annual dividend of $1.29 per share and has a current price of $49.475. Round to the nearest hundredth of a percent.
- The Blackburn Computer Company has declared an annual dividend of $0.70 per share. The stock is trading at $30 per share. Find the dividend yield. (Round your answer to two decimal places.)
5.) Use the given partial stock table. Round dollar amounts to the nearest cent when necessary.
Consider the following for Boeing (BA).
(a)
What is the difference between the highest and lowest prices paid for this stock during the last 52 weeks?
(b)
Suppose that you own 700 shares of this stock. What dividend do you receive this year?
(c)
How many shares of this stock were sold during the trading day?
shares
(d)
What was the price of a share of this stock at the start of the trading day?
6.) Use the given partial stock table. Round dollar amounts to the nearest cent when necessary.
Suppose that you owned 1000 shares of stock in Procter & Gamble (PG). You purchased the shares at a price of $48.97 per share and sold them at the closing price of the stock given in the table.
(a)
Ignoring dividends, what was your profit or loss on the sale of the stock?
This is a (profit or loss)?
(b)
If your broker charges 1.9% of the total sale price, what was the broker's commission?
7.) Use the given partial stock table. Round dollar amounts to the nearest cent when necessary.
Gary Walters owned 400 shares of stock in General Electric (GE). He purchased the shares at a price of $38.09 per share and sold them at the closing price of the stock given in the table.
(a)
Ignoring dividends, what was Gary's profit or loss on the sale of the stock?
This is a (profit or loss)?
(b)
If his broker charges 2.6% of the total sale price, what was the broker's commission?
8.) Use the given partial stock table. Round dollar amounts to the nearest cent when necessary.
Michele Desjardins bought 900 shares of Apple (APPL) at the 52-week low and sold the shares at the 52-week high shown in the table.
(a)
Ignoring dividends, what was Michele's profit or loss on the sale of the stock?
This is a (loss or profit)?
(b)
If her broker charges 2.3% of the total sale price, what was the broker's commission?
9.) A bond has a $12,000 face value, a 6-year maturity, and a 2.9% coupon. Find the total of the interest payments paid to the bondholder.
10.) A mutual fund has total assets of $50,000,000 and total liabilities of $3,000,000. There are 1,100,000 shares outstanding. Find the net asset value of the mutual fund. (Round your answer to the nearest cent.)
11.) A mutual fund has total assets of $11 million and total liabilities of $5 million. There are 2 million shares outstanding. You invest $5000 in this fund. How many shares are you purchasing?
12.) A mutual fund has $500 million worth of stock, $400,000 in cash, and $2 million in other assets. The fund's total liabilities amount to $2 million. There are 9 million shares outstanding. You invest $11,000 in this fund. How many shares are you purchasing? (Round your answer down to the nearest whole number.)
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