The following problem refers to the stock table for ABC Inc. (a tire company) given below. Use the stock table to answer the following questions. Where necessary, round the dollar amounts to the nearest cent. 52-Week High Low Stock SYM Div Yld % PE Vol 100s Hi Lo Close Net Chg 73.62 47.30 ABC Inc. ABC 2.19 1.2 17 5915 57.59 55.48 56.36 +1.32 A. How many shares of this company's stock were traded yesterday? B. What were the high and low prices for a share yesterday? high: low: C. What was the price at which a share traded when the stock exchange closed yesterday? D. What was the change in price for a share of stock from the market close two days ago to yesterday's market close? E. Compute the company's annual earnings per share using (Round the answer to the nearest cent.)
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.
|
52-Week High
|
Low
|
Stock
|
SYM
|
Div
|
Yld
%
|
PE
|
Vol
100s
|
Hi
|
Lo
|
Close
|
Net
Chg
|
|
73.62
|
47.30
|
ABC Inc.
|
ABC
|
2.19
|
1.2
|
17
|
5915
|
57.59
|
55.48
|
56.36
|
+1.32
|
A. How many shares of this company's stock were traded yesterday?
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