The following problem refers to the stock table for ABC Inc (a ire company) give
ID: 3138796 • Letter: T
Question
The following problem refers to the stock table for ABC Inc (a ire company) given below. Use the stock table to answer the following questions. Where necessary, 52-Week Yld Vo Net High Low Stock SYM Div% PE 100s Hi Lociose Cha 74.32 44.64 ABC Inc ABC 1.1 a. What were the high and low prices for a share for the past 52 weeks? High price Low price b. If you owned 700 shares of this stock last year, what dividend did you receive? . what is the annual ieturn for the dividends alone? How does this compare to a bank offering a 3% interest rate? O A. The yleld is lower, and investing in the bank account is always the best option in this case Click to select vour answeris)Explanation / Answer
For the past 52 weeks
a)
High price = $ 74.32
Low price = $ 44.64
b)
Dividend received :
Div = 1.15
If you owned 700 shares, the dividend you receive is = $ 1.15 * 700 = $ 805
c)
Ans: 1.3%
The dividend alone give ABC In Investors an annual return is 1.3%. This much lower than a bank account paying a 3% interest.
B. The yield is lower, and investing in the bank account is always the best option in this case.
d)
The number of shares of this company's stock were traded yesterday :
We find the number of shares traded yesterday by looking under the heading Vol 100s standing for sales volumes in hundreds.
The number in the table is 5915
This means that yesterday a total of 5915 * 100 = 591500 shares were traded.
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