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?

Answer to this question is 0.0758

Step-by-step explanation:

Given:

Number of shares = 144

Price of one share = $7.73

Commission charged by broker = $46.15

Total amount spent by company=144 * 7.73 + 46.15 = $1159.27

Dividend per share = 61 cents.

Since total amount is in dollars we convert this to dollar too.

$1 = 100 cents

Therefore, 61 cents = $0.61

Annual dividend = dividend per share * total number of share

= 0.61 * 144

Annual yield = Annual dividend / Share price

= 0.61 * 144 / 1159.27

=0.07577

= 0.0758 (approx.) which is the answer