Frances bought 144 shares of Dwyn Horticulture for $7.73 apiece. Her broker charged her a commission of $46.15 for the purchase. If the yearly dividend on Dwyn Horticulture is 61 cents per share, what is the annual yield on Frances’s stock?
a.
0.0758
b.
0.0789
c.
0.0132
d.
0.0320

Question

Frances bought 144 shares of Dwyn Horticulture for $7.73 apiece. Her broker charged her a commission of $46.15 for the purchase. If the yearly dividend on Dwyn Horticulture is 61 cents per share, what is the annual yield on Frances’s stock?
a.
0.0758
b.
0.0789
c.
0.0132
d.
0.0320

campbell_st · Answer

the yield is 

Dividend/market price 

or  0.61/7.73