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Published bySierra Heath Modified over 2 years ago

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Planning for the Future How you spend and invest your money can have an impact on your lifestyle at a later time. What might you want to start saving for in the near future?

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Lesson Objective Calculate the profit or loss from a stock sale. Content Vocabulary profit The amount of money made on a product or an investment over and above the initial amount invested. loss When the amount of money received from the sale of product of stock is less than the amount initially invested.

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Pam Schmidt bought 80 shares of Netmark Associates stock at $24 per share. The company paid annual dividends of $0.38 per share. What is the total annual dividend? What is the annual yield to the nearest hundredth of a percent? Example 1

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Find the total annual dividend. Annual Dividend per Share × Number of Shares $0.38 × 80 = $30.40 Example 1 Answer: Step 1

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Find the annual yield. Cost per Annual Dividend per Share ÷ Cost per Share $0.38 ÷ $24.00 = 0.0158 or 1.58% Example 1 Answer: Step 2

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Susana Valasco owns 100 shares of Wagoneer Inc. stock. The stock ranged from a low of $37.26 to a high of $52.86 last year. The annual dividend is $1.10. What is the annual yield based on the high and the low? What is the total annual dividend? Example 2

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Find the annual yield based on the high and the low. Annual Yield on high price $1.10 = 0.02080 or 2.08% $52.86 Example 2 Answer: Step 1

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Annual Yield on low price $1.10 = 0.02952 or 2.95% $37.26 Example 2 Answer: Step 1 (cont.)

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Find the total annual dividend. Annual Yield on high price 100 × $1.10 = $110.00 total annual dividend Example 2 Answer: Step 2

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Lionel LeGrand owns 200 shares of Micronet stock. The stock had a high of $43.95 and a low of $30.00 during the year. The stock paid an annual dividend of 52¢ per share. Practice 1

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Practice 1 (cont.) What is the annual yield based on the high? What is the annual yield based on the low? What is his total annual dividend?

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a. 1.18% b. 1.73% c. $104 Practice 1 Answer

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Audrey Henning owns 600 shares of Saw Creek Timber. The high and low prices for the year were $31.98 and $23.56. Dividends are $2.28 per share. Practice 2

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Practice 2 (cont.) What is her total annual dividend? What is the annual yield based on the high? What is the annual yield based on the low?

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a. $1,368 b. 7.13% c. 9.68% Practice 2 Answer

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