Do calculations on scrap paper as needed. Worked-out solutions are provided at end.
- Ellen Walters bought 400 shares of IBM stock at $56.25 . Assume a commission of 5% of the purchase price. What is the total cost to Ellen?
- Froll Company earns $6 per share; today the stock is trading at $66. The company pays an annual dividend of $.85. Calculate the (a) price-earnings ratio, and (b) yield on the stock (to the nearest tenth percent).
- The stock of Lyon Co. is trading at 62.25. The price-earnings ratio is 18 times the earnings. Calculate the earnings per share (to the nearest cent).
- Alice Disney bought five bonds of AUT Company 8½06 at 84 and seven bonds of QUE Company at 9¾02 at 92. Assume the commission on the bonds is $4 per bond. What was the total cost of all purchases?
- Janice Fall bought one bond for 128. The original bond was 8¼08. Calculate the current yield to the nearest tenth percent.
- Cumulative preferred stockholders receive $.92 per share. There are 80,000 shares. For the last four years, no dividends have been paid. This year $280,000 is paid out in dividends. How much dividends to preferred is still in arrears?
- Lee Winn buys 600 shares of a mutual fund with an NAV of $16.22. This fund has a load charge of 7%. What is the offer price and what did Lee pay for her investment?
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