Answer:
The right answer is:
(a) $30.78
(b) $360
(c) 2.339%
Step-by-step explanation:
The given values are:
At $36.30 per share,
Purchased = 300 shares
At $22.50 per share,
Purchased = 200 shares
Per share dividend,
= $0.72
Now,
(a)
The average price per share will be:
= [tex]\frac{(300\times 36.30)+(200\times 22.50)}{300+200}[/tex]
= [tex]\frac{10,890+4,500}{500}[/tex]
= [tex]\frac{15,390}{500}[/tex]
= [tex]30.78[/tex] ($)
(b)
The annual dividend will be:
= [tex]0.72\times Number \ of \ shares[/tex]
= [tex]0.72\times 500[/tex]
= [tex]360[/tex] ($)
(c)
The average annual yield will be:
= [tex]\frac{Dividend \ per \ share}{Average \ cost}\times 100[/tex]
= [tex]\frac{0.72}{30.78}\times 100[/tex]
= [tex]2.339[/tex]%
