Shelly Pearce's financial consultant advised her to invest a portion of her business's profit. After attending...

 

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Shelly Pearce's financial consultant advised her to invest a portion of her business's profit. After attending a small business investment seminar, Shelly began following several stocks and bonds. She is interested in a stock that is currently trading at $45.25, providing an annual dividend of $2.98. During this period of time, she has also followed a bond that is currently trading at $97.50, with an annual interest rate of 10.5%. Calculate the yield for the stock and bond and compare the two investments. 1. What is the stock yield? 2. What is the bond yield? Shelley shared the advice from her financial consultant with her business partner. He is interested in a stock that is currently trading at $38.95, providing an annual dividend of $2.15. He is also interested in a bond that is currently trading for $99.25 with an annual interest rate of 10.25%. Calculate the yield of Shelley's partner's stock and bond and compare the two investments. 3. What is the stock yield? 4. What is the bond yield? 5. Which of the four options is a better investment for the business? Explain. Shelly Pearce's financial consultant advised her to invest a portion of her business's profit. After attending a small business investment seminar, Shelly began following several stocks and bonds. She is interested in a stock that is currently trading at $45.25, providing an annual dividend of $2.98. During this period of time, she has also followed a bond that is currently trading at $97.50, with an annual interest rate of 10.5%. Calculate the yield for the stock and bond and compare the two investments. 1. What is the stock yield? 2. What is the bond yield? Shelley shared the advice from her financial consultant with her business partner. He is interested in a stock that is currently trading at $38.95, providing an annual dividend of $2.15. He is also interested in a bond that is currently trading for $99.25 with an annual interest rate of 10.25%. Calculate the yield of Shelley's partner's stock and bond and compare the two investments. 3. What is the stock yield? 4. What is the bond yield? 5. Which of the four options is a better investment for the business? Explain.

Answer rating: 100% (QA)

Stock and Bond Yield Calculations Shellys Investments 1 Stock Yield Formula Dividend Yield Annual Di... View the full answer