01.6.2009

How many shares of stock should the club buy for its investment?

investment



Investment Club.

An investment club bought a bond of an oil corporation for $5000. The bond yields 8% per year. The club now wants to buy shares of stock in a hospital supply company. The stock sells at $20 per share and earns a dividend of $0.50 per share per year. How many shares should the club buy so that its total investments in stocks and bonds yield 5% per year?

Jacque

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks

One Response to “How many shares of stock should the club buy for its investment?”

  1. harpo3 Says:

    The stock or 289 shares.

Leave a Reply