Assume that the following quote for Merck, a NYSE stock, appeared on August 1, 2

Question

Assume that the following quote for Merck, a NYSE stock, appeared on August 1, 2012 (Wednesday) on Yahoo! Finance (http://finance.yahoo.com/q?s=MRK&ql=0):

Given this information, answer the following questions.

At what price did the stock sell at the time of the quote?
$  

What is the stock's price/earnings ratio?


What does that indicate? Round your answers to the nearest whole number.
This means that investors are willing to pay more than $   for every $1 of earnings per share that the company generated last year.

What is the last price at which the stock traded on the prior trading day?
$  

What's the stock's dividend yield?
%

What are the highest and lowest prices at which the stock traded during the latest 52-week period?

How large is the market capitalization of the company?
$   billion

Merck & Co. Inc. (MRK) - NYSE 44.56 0.39(0.88%) 1:34PM EDT Prev Close: 44.17 Day's Range: 44.25 - 44.79 Open: 44.45 52wk Range: 29.47 - 45.17 Bid: 44.62 x 6900 Volume: 5,345,943 Ask: 44.63 x 1400 Avg Vol (3m): 15,788,300 1y Target Est: 45.69 Market Cap: 135.74B Beta: 0.43 P/E (ttm) 20.44 Next Earnings Date: N/A EPS (ttm): 2.18 Div & Yield: 1.68 (3.80%)

Explanation / Answer

Price quote for sell = Ask Price = $ 44.63

Stock Price/ Earnings ratio = Price per share/EPS= 44.56/ 2.18 = 20.44

Last Price = Pre Close = $ 44.17

Stock's dividend yield = 1.68/44.56 = 3.77%

Highest price 52 Week = $45.17

Lowest Price 52 week = $ 29.47

Market Cap of company = $ 135.74 B

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