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Below is a typical stock quote screen for Great West Lifeco Insurance Company

Finance Dec 02, 2020

Below is a typical stock quote screen for Great West Lifeco Insurance Company. Yield PIE 52 High Ticker Close Volume 52 week week Low GWO $33.36 1,007,140 4.95% 12.55 $34.42 $26.83 What is Great West Lifeco's annual dividend per share? ($ per share) A/ If Josephine had purchased 200 shares of GWO one year ago at its stated 52 week high and sold them at their closing price, what is the dollar amount of Josephine's return (excluding dividends)? ($) ? If George places a buy order that indicates he does not want to purchase the stock above a certain price level, what is that order called?

Expert Solution

1) Annual Dividend per Share :

As per the stock quote the Yield is given as 4.95%. This is the Dividend Yield of the stock.

Dividend Yield = Dividend per share / Market price per share

or, Dividend per share = Dividend Yield x Market price per share

The Market price per share is the "Close" given in the quote = $33.36

Hence, Dividend per share = $33.36 x 4.95% = $ 1.65132 or $ 1.65

2) Josephine had purchased 200 shares one year ago at its stated 52 week high, which is given as $34.42 (per share).

Hence, Josephine's purchase cost of the shares = Price per share x Number of shares = $34.42 x 200 = $ 6,884

She sold them at the Closing price which is $33.36. Hence, Sale proceeds of the shares =  $33.36 x 200 = $ 6,672

Dollar return (excluding dividends) = Sale proceeds - Purchase cost = $ 6,672 - $ 6,884 = $ -212

3) If George places a buy order that indicates he does not want to purchase the stock above a certain price level, then that order is called a Buy Limit Order.

Limit Order is a type of order placed where the trader wants to buy or sell a stock at a certain specified price or a better price. A limit order gets executed only at the specified price or a better price. In a Buy Limit order, the order is executed only at the specified (or limit) price or a lower price. Thus the investor does not have to buy the stock above the set limit price.

Hence, George will ensure that he does not have to purchase the stock above a specified price level by placing a Buy Limit order.

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