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Business Math Homework 21

Calculate the missing value.
(Round your answer to the nearest whole number.)
 
 

 

 Calculate the yield of the following stock.
(Round your answer to the nearest tenth percent.)
Company Yearly dividend Closing price per share
Best Buy $ 0.10 $ 9.59

 
 

 

 
Given: 23,000 shares cumulative preferred stock ($4.25 dividend per share): 46,000 shares common stock.
Dividends paid: 2013, $9,200; 2014, 0; and 2015, $310,000.
How much will the preferred stockholders and the common stockholders receive each year?
(Leave no cells blank - be certain to enter "0" wherever required.)
 

 

 
Calculate the total dollar amount you would pay at the quoted price.
(Disregard commission or any interest that may have accrued)
(Round your answer to the nearest cent.)
 
Company  Bond price  Number of bonds purchased
Wang 103.25% 3




 
 

 

 
From the following information calculate the net asset values.
(Round your answers to the nearest cent.)
 
Current market value
of fund investment
Current liabilities Number of
shares outstanding
NAV
a. $5,770,000 $880,000 400,000 $
b. $14,220,000 $890,000 950,000 $

 
 

 
Ryan Neal bought 1,600 shares of Ford at $15.94 per share.
Assume a commission of 3% of the purchase price. Ryan sells the stock for $20.25 with the same 3% commission rate.
What is the gain or loss for Ryan?
(Input the amount as a positive value.
Round your answer to the nearest cent.)
 

 

 
Jim Corporation pays its cumulative preferred stockholders $1.40 per share.
Jim has 25,000 shares of preferred and 55,000 shares of common. In 2015, 2016, and 2017, due to slowdowns in the economy,
Jim paid no dividends. Now in 2018, the board of directors decided to pay out $530,000 in dividends.
How much of the $530,000 does each class of stock receive as dividends?
 
  Dividends
Preferred stock $
Common stock $

 
 

 

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Ron and Madeleine Couple received their 2010 Form 1099-DIV (dividends received) in the amount of $1,075.
Ron and Madeleine are in the 28% bracket.
 What would be their tax liability on the dividends received?
(Round your answer to the nearest cent.)
 

 

The following bond was quoted in The Wall Street Journal:
 
Bonds Current yield Volume Close Net change
NJ 4.125% 35 1.8% 5 102.375% +1.125%


Seven bonds were purchased yesterday, and 7 bonds were purchased today.
How much more did the 7 bonds cost today?
(Do not round intermediate calculations.
Round your answer to the nearest cent.)

 
 
102.375 + 1.125 x 7 -102.375 x 7 x 10
 

Lee Ray bought 240 shares of a mutual fund with a NAV of $13.60. This fund also has a load charge of 8.5%.



 
Calculate the cost (omit commission) of buying the 1,800 shares of Apple at $126.40.
1,800 shares x $126.40

$227,520
 

 
Calculate the yield of the following stock.
Yearly dividend of $0.09 and closing price per share $9.58.
 
0.09 / 9.58
0.0093945 x 100

0.93945
 

 
Common stockholders have the right to _____________.
Vote
 
Preferred stockholders do not have ____________, but they receive preference over common stockholders in __________________ and in the company's assets if the company goes bankrupt.
voting rights; dividends
 

 
The stock yield tells stockholders that the dividend per share is returning a rate to investors. Its is calculated by formula:
Stock Yield = Annual Dividend per share / Todays last price per share.
Calculate the missing value of Bell South with Earnings per share of $2.55, Closing Price of Share is $27.54. What is the Price-earnings ratio?
$27.54/$2.55
$10.80
 

 
The price-earnings ratio measures the relationship between the closing price per share of stock and the annual earnings per share. What is the formula?
PE Ratio = Last price per share of stock / Annual earnings per share
 
 
Calculate the missing value for American Express given earnings per share of $2.95 and a price-earnings ratio of 26. What is the closing price per share?
 
$2.95 x 26

$76.70
 

 
Assuming a 1% commission, calculate the total cost of buying 200 shares of CVS at $102.91.
 
$102.91 x 200 = $20,582
Commission Rate on 200 shares:
$20,582 x 0.01 = $205.82
Total Cost of Shares:
$20,582 + $205.82 = $20,787.82
 

 
Shares are typically traded in groups of 100 called ___________.
Round Lots
 
Purchases of fewer than 100 shares of stock are called ___________________.
Odd Lots
 
The 300 shares of General Mills stock bought at $70.20 were sold at $55. Commission is omitted.
What would be the loss?
 
300 x $70.20 = $21,060
300 x $55 = $16,500
$21,060 - $16,500 = $4,560

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