How Many Shares Of Stock Should The Club Buy For Its Investment?
Submitted by admin on October 5, 2009 – 11:06 amNo Replies
A web user asks, 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?
Can you help them out? Post your advice!
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