Question

Robert Masterson bought 99 shares of stock Eddie price of $55 per share and $150 shares at $52 per share. The annual dividend per share was $1.27 what is Mastersons average annual yield

Answer 1

2.39%

Explanation:

Given that

99 shares at $55 per share = $5445

150 share at $52 per share = $7800

Hence, total share cost => 5445 + 7800 => $13,245

Therefore, given that the average annual yield is the summation of all the income gotten on investment and dividing the amount by the number of years the money was invested.

With a $1.27 dividend per share, and a total share of 99 + 150 = 249 shares

=> 1.27 * 249 = $316.23

Hence, average annual yield = $316.23 ÷ 13,245

=> 0.0239

=> 2.39%

Therefore, Robert Mastersons' average annual yield is 2.39%