Problem 3-1 Assume you found the following stock quote for DRK Enterprises, Inc.

Question

Problem 3-1

Assume you found the following stock quote for DRK Enterprises, Inc., at your favorite Web site. You also found that the stock paid an annual dividend of $.75, which resulted in a dividend yield of 1.30 percent.

What was the closing price for this stock yesterday? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

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

Assume you found the following stock quote for DRK Enterprises, Inc., at your favorite Web site. You also found that the stock paid an annual dividend of $.75, which resulted in a dividend yield of 1.30 percent.

Explanation / Answer

Dividend yield= DPS/MPS

Dividend yield=1.30%(1.30/100=0.013)

DPS=0.75

by applying values in the given question

1.30=0.75/MPS

MPS=0.75/0.013

1. MPS=57.69 (closing price)

2. No. of lots of stock traded yesterday= volume/closing price of stock

18,649,130/57.69=323264.51

Traded lots =323265

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