Help. :C

Question

Help. :C

anonymous · Answer

Whats the question? ^_^

anonymous · Answer

Stock in the Sister Golden Hair Shampoo Company was selling for $24. 46 per share, and it was paying $2.80 annual dividend. It underwent a 1-for-3 split. 
 a. What was the new price of one share after the split? 
 b. If you owned 300 shares before the split, how many shares did you own after the split? 
 c. What was the annual dividend per share after the split? 
 d. What was the yield, to the nearest tenth of a percent, after the split?

anonymous · Answer

e_e

anonymous · Answer

Which math course is this?

anonymous · Answer

Financial Algebra.

anonymous · Answer

1 for 3 split is a ratio. Example. If you have a 2 for 1 split for $100. It would be 100(2/1) = $200

anonymous · Answer

So for 24.46, it's 24.46(1/3) = $8.15 That should be a)

dumbcow · Answer

http://en.wikipedia.org/wiki/Stock_split

anonymous · Answer

For b) 300 shares of 24.46/share would be...

anonymous · Answer

Or better yet, 300 times 8.15/share = $2445

anonymous · Answer

I see. ;o

anonymous · Answer

Give me a sec for c and d. I am literally just learning this.

anonymous · Answer

Sure, take your time.

anonymous · Answer

http://www.e-digitaleditions.com/i/176100/69 This is the book I'm using. It's a free online version.

anonymous · Answer

This is complicated. Sorry I just want to make sure I understand it completely.

anonymous · Answer

Well C...it is 2.8 times 3 is 8.4?

anonymous · Answer

Both. I found the answer but I want to know it is right.

anonymous · Answer

I am confused with A.. How you get 93 cents?

anonymous · Answer

I am backing up.

anonymous · Answer

Sorry. I made a mistake because I'm trying to rush you the answer.

anonymous · Answer

have you read the page i sent you? maybe you can work on it with me and see if we get the same thing.

anonymous · Answer

According to the book, it says you get the annual income from dividends by multiplying the number of shares by the annual dividend per share. Your question lists that as $2.80 and you have 300 shares initially.

anonymous · Answer

But after the split you have only 100 shares. So 100 times 2.80 is $280

anonymous · Answer

This is part c) I am sure of it.

anonymous · Answer

a) is still as I told you initially $8.15. b) is still 100. and c) is $280. Do you agree with that?

anonymous · Answer

Yes, it makes sense.

anonymous · Answer

OK. Now let's figure out d). :)

anonymous · Answer

for d) it's asking for the yield percent after the split. According to the book, the equation for yield is the annual dividend per share divided by the current price of one share.

anonymous · Answer

So 2.8/230 is 1.22%

anonymous · Answer

of one share

anonymous · Answer

So, it is 2.8/24.46 is 11.44?

anonymous · Answer

almost

anonymous · Answer

"current price" of one share

anonymous · Answer

look back at the questions and see which one gives you the current price of one share.

anonymous · Answer

after the split..

anonymous · Answer

Tell me if you give up and I'll just list the soln.

anonymous · Answer

Is current price is 100?

anonymous · Answer

100 is the amount of shares. so that would be the "current shares".

anonymous · Answer

I give up. -3-

anonymous · Answer

First answer this. a. What was the new price of one share after the split?

anonymous · Answer

a) is $8.15. b) is still 100. and c) is $280.

anonymous · Answer

d) is 2.8 / 8.15 = 32.4%

anonymous · Answer

Tough math. Btw, it is 34.4%

anonymous · Answer

Oops. copied it down from my calculator wrong.

anonymous · Answer

It's alright. :P

anonymous · Answer

34.4% is correct. Yeah. Thanks for being patient. It was interesting to learn. Good luck :)

anonymous · Answer

Can you check another one? He/She helped me and I think it is wrong. :P

anonymous · Answer

Where?

anonymous · Answer

I'll tag you.

anonymous · Answer

a) 73.38
d) 2.8 / 73.38 = 3.82 %