An investor holds a portfolio of two stocks. Stock A has a share price of \$48.50 and pays an annual dividend of \$2.18 per share. Stock B has a share price of \$125.00 and a dividend yield of 3.2%. The investor owns 250 shares of Stock A and 180 shares of Stock B. a) Calculate the dividend yield for Stock A, correct to two decimal places. (1 mark) b) Calculate the annual dividend paid on the investor's holding of Stock B. (1 mark) c) Calculate the total annual dividend income from both stocks combined. (1 mark)
General Mathematics · Unit 1 · Consumer arithmetic · Applications of rates, percentages and use of spreadsheets
Calculate the dividend paid on a portfolio of shares, given the dividend yield or dividend paid per share, and compare share values by calculating a price-to-earnings (P/E) ratio. dividend yield = dividend share price × 100 P/E ratio = market price per share annual earnings per share
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Question 2
An investor holds shares in three companies. The table shows details for each holding. Determine the total annual dividend income from the portfolio and identify which company has the lowest price-to-earnings (P/E) ratio.
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