Question

Stock Quotes You have found the following stock quote for ORF Enterprises, Inc., in the financial pages of today s newspaper. What was the closing price for this stock that appeared in yesterday s paper? If the company currently has 1 million shares of stock outstanding, what was net income for the most recent four quarters?

YTD% r	52 wk Hi	52 wk Lo	Stock	Sym	Div	Yld %	PE	Vol 100s	Last	Net Chg
103.45	55.3	12.68	ORF	ORF	.75	2.5	45	31346	????	5.20

PART A:
Closing price in yesterday s paper: $____________.

PART B:
Net Income for most recent four quarters: $____________

Answer 1

A) Dividend yield = Dividend / Current stock price

or, 0.025 = 0.75 / Current stock price

or, Current stock price = 0.75 / 0.025 = 30

This is today's closing stock price.

Yesterday's stock price = Today's closing price - Net change = 30 - 5.20 = 24.80

B) PE = Current stock price / Earning per share (EPS)

or, 45 = 30 / EPS

or, EPS = 0.666666666

Now, EPS = Net income / No. of shares outstanding

or, 0.666666666 = Net Income / 1,000,000

or, Net Income = 666,666.666 or 666,666.67