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Reading The Stock Table
Reading The Stock Table
𝒂𝒏𝒏𝒖𝒂𝒍 𝒅𝒊𝒗𝒊𝒅𝒆𝒏𝒅𝒔
Rate of Income =
𝒕𝒐𝒕𝒂𝒍 𝒄𝒐𝒔𝒕 𝒐𝒇 𝒔𝒕𝒐𝒄𝒌
EXAMPLE:
If Robert owns a share of stock that costs P960 and pays quarterly dividend
of P22.40, the rate of income is 9 1/3%
22.40 𝑥 4
Rate of income = = 0.0933 or 9 1/3%.
960
Selling Stocks
Formula :
NET Proceeds = market price - expenses
Name of Stock Shares Held Selling price per Expenses( Net Proceeds
shares commission, Taxes,
Fees
Find the yield on P1000, 9% ACTS bond priced at 94 plus P10 commission.
Solution:
Annual income: P1000 X 0.09 X 1 =