Question by Karen H: How many shares of stock should the club buy for its investment?
Investment Club.
An investment club bought a bond of an oil corporation for 00. The bond yields 8% per year. The club now wants to buy shares of stock in a hospital supply company. The stock sells at per share and earns a dividend of .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?
Best answer:
Answer by harpo3
You would have to invest 70 in the stock, or 289 shares.
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Source: Stock Newsletters