The following groblem rofers to the stock table for ABC Inc (a tire company) glv
ID: 2412282 • Letter: T
Question
The following groblem rofers to the stock table for ABC Inc (a tire company) glven below, Uise the stock table 52-Week to answer the following questions. Where necessary, round the dollar amounts to the nearest cent Yld Vol Net High Low Stock SYM Div %PE 100s Hi Lo Close C 6 43.01 ABC Inc. ABC 328 09 1 15 59 98 +1.0 a. What were the high and low prices for a share for the past 52 weeks? High price Low price b. If you owned TO0 shares of this stock last year, what dividend did you receive? c. what is the annual return for te didends alone? How does this compare to a bank ering a 3% interest fate? A. The yleld is lower, and investing in the bank account is always the best opticn in this case B. The yield is lower, but there is still the potential to get a beter return on the stock nvestment d. How many shares of this company's stock were traded yesterday? shares Cick to select your answers) ? WEExplanation / Answer
(A) 52 WEEKS
HIGH PRICE = $80.26
LOW PRICE = $43.01
(B) DIVIDEND = 700SHARES * $3.28 = $2296
(C) THE ANNUAL RETURN FOR THE DIVIDENDS IS 0.9%.
(a) THE YIELD IS LOWER AND INVESTING IN THE BANK ACCOUNT IS ALWAYS THE BEST OPTION IN THIS CASE BECAUSE INTEREST RATE OF 3% IS FAR BETTER THAN THE DIVIDEND YIELD OF 0.9%.
(D) 591500 SHARES WERE TRADED YESTERDAY.
(E) SHARE PRICE YESTERDAY
HIGH PRICE = $59.66
LOW PRICE = $57.47
(F) $58.98 WAS THE PRICE AT WHICH THE SHARE TRADED WHEN THE STOCK EXCHANGE CLOSED YESTERDAY.
(G) THERE IS AN INCREASE OF $1.01 FROM THE MARKET CLOSED 2 DAYS AGO TO YESTERDAYS MARKET PRICE.
(H) ANNUAL EARNINGS PER SHARE= YESTERDAYS CLOSING PRICE PER SHARE/ PE RATIO
= $58.98/17% = $346.94117647 = $347 ( ROUNDED OFF )
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