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Interpret the following stock quote. GE: open price: 25 closing price: 26 bid: 25.50 offer: 26...

Question:

Interpret the following stock quote.

GE:

open price: 25
closing price: 26
bid: 25.50
offer: 26
days range: 25-26
52 week range: 20-28
volume: 2 million shares
avg. daily volume: 1 million shares
market cap: 200 billion
earnings per share: $1.50
dividend: $1.10

Tell the price an investor would have to pay to buy the stock and its dividend yield based on that price?

Dividend Yield:

The dividend yield compares the dividend of the stock with the existing share price. This ratio is calculated by dividing the annual dividend of the stock with the existing market price of the stock.

Answer and Explanation:

The office price is the investor is required to buy stock. I.e. $26 here

Dividend yield {eq}= \dfrac{Dividend \ per \ share}{Share \ price} \\ = \dfrac{\$1.10}{\$26} {/eq}

= 4.23%


Learn more about this topic:

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What Is Dividend Yield? - Definition & Calculation

from Corporate Finance: Help & Review

Chapter 2 / Lesson 10
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