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2 October, 12:41

Miranda purchased 425 shares of Dagofi Radar stock at $14.15 apiece. She earns $374.00 in dividends every year. What is the yield on Miranda's Dagofi Radar stock?

a.

0.0622

b.

6.22

c.

26.4

d.

0.0264

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Answers (1)
  1. 2 October, 15:46
    0
    We are asked to evaluate the yield of the whole stock, not just one share. We have that Miranda has paid in total 425*14.15=6013.75$ to acquire the shares (total stock). The yield of an asset is its profit per year over its cost. In this specific case, we have that the yield is 374/6013.75. The result of this calculation is choice a.
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