Question

Problem 3-1 Stock Quotations (LO2, CFA3) You found the following stock quote for DRK Enterprises, Inc., at your favorite website. You also found that the stock paid an annual dividend of $.93, which resulted in a dividend yield of 1.30 percent. DAILY Close Company DRK Enterprises Symbol DRK Vol 18,649, 130 Chg .26 %Chg .36% YTD %Chg 8.73% High 78.19 52 WEEK Low 51.74 %Chg 11.0% a. What was the closing price for this stock yesterday? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Closing price b. How many round lots of stock were traded? (Round your answer to the nearest whole round lot.) Traded lots

Answer 1

Solution:

a)Calculation of closing price:

We can calculate the closing price of share with the help of formula used to calculate the dividend yield as follow:

Dividend Yield=Dividend per share/Share price

Share Price=Dividend per share/Dividend yield

=$.93/1.30%

=$71.53

Since,stock closed up $0.26,thus yesterday stock's price is;

=$71.53-0.26=$71.27

b)Calculation of round lots of stock were traded

Volume=18649,130

Round lots of stock were traded=18649,130/100

=186,491