At the end fiscal year 2009, Not Enough Salt, Inc\' s stock price was $48.75. A

Question

At the end fiscal year 2009, Not Enough Salt, Inc's stock price was $48.75. A year later, it was $52.88. Per share dividends over the year were

$1.04, while earnings per share were $2.03. Use this information to answer questions 5-7

5. Calculate the rate of return for common stock owners for fiscal year 2010.

a. 13.56%

b. 2.98%

c. 18.55%

d. 10.61%

6. What is the dividend yield for fiscal year 2010?

a. 2.13%

b. 4.14%

c. 7.67%

d. 5.25%

7. What is the percentage change in the share price?

a. 2.13%

b. 8.49%

c. 1.22%

d. 8.47%

Explanation / Answer

5) rate is ( 1.04 + 52.88 - 48.75 ) / 48.75 = 10.61%

Hence

d)

6) dividend yield is 1.04 / 48.75 = 2.13%

Hence

a)

7) Percentage change in share price is ( 52.88 - 48.75 ) / 48.75 = 8.47%

Hence

d)

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