general dynamics

Question

general dynamics close: 74.92 CHG: -1.82 Volume: 5947222 52 WK HIGH: 95.13 52 WK LOW: 74.01 DIV: 1.40 P/E: 13 Yield: 1.9 YTD% CHG -15.8 1. FInd closing price the day before the quote appeared? 2. How many shares could you buy for 5000? 3. Total annual divident income from the number of shares obtained in question 2? 4. what are the earnings per share?

Answer 1

1. The stock closed at $74.92 and was down $1.82.

So the previous day's closing price was:

$74.92 + $1.82 = $76.74

1. To find how many shares $5,000 could buy:

$5,000 ÷ $74.92 = 66.74

Since you normally buy whole shares:

66 shares

1. The annual dividend is $1.40 per share:

66 × $1.40 = $92.40

So the annual dividend income would be $92.40.

1. P/E = Price ÷ Earnings per Share

So:

EPS = Price ÷ P/E

$74.92 ÷ 13 = $5.76

Answers:

1. $76.74
2. 66 shares
3. $92.40
4. $5.76 earnings per share