Question

Stock in Chambers Translation cost $18.89 per share when Anthony bought it. He earns $410.40 per year from his 360 shares in Chambers Translation. What is the percent yield on Anthony’s stock? a. 6.03% b. 2.17% c. 0.0603% d. 0.0217%

Answer 1

The answer is A.6.03

Answer 2

Answer:

The correct option is A.

Step-by-step explanation:

Number of shares is 360. Total earnings from 360 shares is $410.40. Chambers Translation cost $18.89 per share when Anthony bought it.

Total cost of 360 shares is,

$360\times 18.89=6800.4$

Yield on authority stock is

$Y=\frac{\text{Total Earning}}{\text{Total Cost}}\times 100$

$Y=\frac{\text{410.40}}{\text{6800.4}}\times 100=6.0349\approx 6.03$

Therefore option A is correct.