Answered: 1. One share of Gemco's common stock…

1. One share of Gemco's common stock pays an annual dividend of $3.17. Today, Gemco closed at $21.29 with a net change of +0.58. What was the stock's yield at yesterday's closing price?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

This is for financial mathematics, please help me, thank you very much for your help!

8.9 Dividend Income
1. One share of Gemco's common stock pays an annual dividend of $3.17. Today, Gemco
closed at $21.29 with a net change of +0.58. What was the stock's yield at yesterday's closing
price?

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