Use the ASX website, Yahoo Finance or other research sites to determine the one
ID: 2382526 • Letter: U
Question
Use the ASX website, Yahoo Finance or other research sites to determine the one year change in share price of the Fortescue Metal Group LTD stock. Use the closing price.
Use the ASX website or annual report to determine the dividend paid for the year. If the share is franked, you will have to gross it up to account for franking credits. If the stock pays dividends in foreign currency, you will have to convert that home currency using the exchange rate of the date of dividend payment.
Most Australian companies pay twice a year: interim and final dividend.
Some companies may pay a special dividend. This should be included in calculating your total one year return.
You can use the All Ordinaries (AORD) as a proxy for the market.
The dates used should match the dates of the 2015 annual report.
Explanation / Answer
From Yahoo Finance
Open Price1.92
Close Price 1.86
% Change = (1.86-1.92)/1.92
=-3.125%
Dividend Paid for the year
Interim Dividend = A$0.03 Millions
Final Dividend= A$ 0.02 Millions
Total Dividend = A$0.05 Millions
Fully Franked Dividend Calculation
Franking Credits = (Dividend Amount / (1-Company Tax Rate)) – Dividend Amount
A$0.05 / (1 – 0.30)) – A$0.05
=A$ 0.0214
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