Exam 14: Investing in Stocks

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Fred Manufacturing Company pays an annual dividend of $0.65 per share, has earnings per share of $2.50, and sells for $35 a share. What is this firm's dividend payout ratio?

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Beverly Frickel purchased 100 shares of Gleason Systems stock for $42.50 per share. Her commission for this purchase was $35. She sold the stock two years later for $55 per share and a commission of $50. While she held the stock it paid a dividend of $1.50 per share. What was Beverly's total dollar return on this stock?

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