Question

You found the following stock quote for DRK Enterprises, Inc., at your favorite website. You also found that the stock paid an annual dividend of $.79, which resulted in a dividend yield of 1.10 percent.

				DAILY			YTD	52 WEEK
Company		Symbol	Vol	Close	Chg	%Chg	%Chg	High	Low	%Chg
DRK Enterprises		DRK	18,649,130	??	.26	.36%	8.73%	78.19	51.74	11.0%

a. What was the closing price for this stock yesterday? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Closing Price:

b. How many round lots of stock were traded? (Round your answer to the nearest whole round lot.)

Traded Lots:

Answer 1

Solution:

a)Calculation of closing price:

We can calculate the closing price of share with the help of formula used to calculate the dividend yield as follow:

Dividend Yield=Dividend per share/Share price

Share Price=Dividend per share/Dividend yield

=$.79/1.10%

=$71.82

Since,stock closed up $0.26,thus yesterday stock's price is;

=$71.82-0.26=$71.56

b)Calculation of round lots of stock were traded

Volume=18649,130

Round lots of stock were traded=18649,130/100

=186,491