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Warm-Up--Stock Market Math
TOTAL RETURN (Review from previous lessons)
You own 180 shares of ABC Corporation stock. You bought them 2 years ago for $19.00 per share. Today, they are worth $34.25 per share. For each of the last 2 years, the company has issued an annual dividend of $1.70/share. If you sold them today, what is your TOTAL RETURN?
CURRENT YIELD (Review from previous lessons)
If your stock pays an annual dividend of $2.50 and is currently selling for $75.00 a share, what is your current yield?
CAPITALIZATION & STOCK BUYBACK
A company has 2,000,000 shares of stock outstanding. Each share of stock is worth $5. What is this company's total market capitalization?
Total # of Shares of Stock x Current Stock Price = Market Capitalization
2,000,000 x $5.00 = 10,000,000
If the company decided to BUY-BACK 15% of the shares of stock outstanding, how many shares would be left outstanding?
Step-1 Total # of Shares of Stock x Buyback Percentage = Buyback Shares
2,000,000 x 0.15 = 300,000
Step-2 Subtract Buyback Shares from Total # of Shares of Stock
2,000,000 - 300,000 = 1,700,000 share of stock outstanding
NOW YOU TRY CALCULATING
A company has 3,500,000 shares of stock outstanding. Each share of stock is worth $3.
Question-1 - What is this company's total market capitalization?
Question-2 - If the company decided to BUY-BACK 20% of the shares of stock outstanding, how many shares would be left outstanding?
WANT MORE STOCK INVESTMENT IDEAS?
Check out some of these TV Shows for more information on what/how to invest.
MAD MONEY w/ Jim Cramer - LIGHTNING ROUND VIDEO!
http://www.cnbc.com/mad-money/
(Feel free to explore the Mad Money Website for investing ideas and Cramer's opinions on different stocks and investments)
Group Trading Time (10 minutes)
Continue Working On STOCK MARKET PROJECT
Section-1 Deadline = Friday November 2nd, 2018
Section-2 Deadline = Wednesday November 14th, 2018
Section-3 Deadline = Tuesday November 27th, 2018
Share-Outs will take place on November 28th & 29th.
Please refer to the project link below for complete details.
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