The following is a recent stock market listing for Bombardier Inc. Class B (common) shares: Instructions (a)
Question:
Instructions
(a) What is the highest price Bombardier's shares traded for during the year? The lowest?
(b) What is the annual per share dividend paid on these shares?
(c) If you had purchased 1,000 common shares at Bombardier's closing price of the day in the above listing, what would be the total cost of your share purchase?
(d) What was the closing price of Bombardier's common shares on the previous day?
(e) How many Bombardier common shares were sold on the trading day of the listing?
(f) What would be your likely motivation for purchasing these shares-dividend income or capital appreciation? Explain.
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118024492
5th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine