Principles of Managerial Finance

320 PART 2 Important Financial Concepts

Hint Preferred stock
quotations are listed separately
and include only four data
items: dividend, dividend yield,
closing price, and change in
closing price from the previous
day.

McDonalds

Source: Wall Street Journal, March 18, 2002, p. C4.

YTD

% CHG

52 WEEKS

HI

YLD

%

VOL

100S

NET

LO STOCK (SYM) DIV PE LAST CHG

FIGURE 7.3

Stock Quotations

Selected stock quotations

for March 15, 2002

quotations include financial newspapers, such as theWall Street Journaland

Investor’s Business Daily,and the business sections of daily general newspapers.

Figure 7.3 includes an excerpt from the NYSE quotations, reported in the

Wall Street Journalof March 18, 2002, for transactions through the close of

trading on Friday, March 15, 2002. We’ll look at the quotations for common

stock for McDonalds, highlighted in the figure. The quotations show that stock

prices are quoted in dollars and cents.

The first column gives the percent change in the stock’s closing price for the

calendar year to date. You can see that McDonalds’ price has increased 8.5 per-

cent (8.5) since the start of 2002. The next two columns, labeled “HI” and

“LO,” show the highest and lowest prices at which the stock sold during the pre-

ceding 52 weeks. McDonalds common stock, for example, traded between

$24.75 and $31.00 during the 52-week period that ended March 15, 2002.

Listed to the right of the company’s name is its stock symbol;McDonalds goes by

“MCD.” The figure listed right after the stock symbol under “DIV” is the annual

cash dividend paid on each share of stock. The dividend for McDonalds was

$0.23 per share. The next item, labeled “YLD%,” is the dividend yield,which is

found by dividing the stated dividend by the last share price. The dividend yield

for McDonalds is 0.8 percent (0.2328.720.00800.8%).