Margie Browning, a wise investor, purchased 500 shares of Krispy Kreme Doughnut Corporation at $21 and sold the 500 at $103. She paid a 2% commission before and after the sale. What was Margie's gain before taxes?
U.S. News and World Report reported a bond interest. In 1981, when inflation and deficit spending were rampant, yields on a 10-year bond hit a record of 15.3%. Bonds this year are paying about 4.8%. On a thousand-dollar investment, what is the difference in the amount of this year's interest?
Heintz earned $2.32 per share. Today the stock is trading at $44. The company pays an annual dividend of $.25. Calculate (a) the price-earnings and (b) the yield on the stock (to the nearest tenth percent).
Vic Williams bought 5 bonds of LRC Company 5 ½ 08 at 88 and 7 bonds of Large Company 6 ½ 09 at 81. Assume the commission on the bonds is $3 per bond. What is the total cost of all the purchases?
Cumulative preferred stockholders of Loon Company receive $.88 per share. The company has $110,000 shares outstanding. For the last 6 years, Loon paid no dividends. This year, Loon paid $305,000 in dividends. What is the amount of dividends in arrears that is still owed to the preferred stockholders?
Jill Lee bought 700 shares of a mutual fund with a NAV of $14.20. This fund has a load charge of 3%. (a) What is the offer price and (b) What did Jill pay for the investment?
Frank White has 3 corporate bonds yielding 5.5% return. How much total interest did Frank receive before tax?
The following shows and an estimate of 3-to-5 year earnings growth rates and price-earnings ratios based on recent estimates for 4 companies.
Company
Stock price
Est. PE ratio
Annual earnings per share
a. General Mills (GIS)
$67
19
b. Gillette (G)
81
27
c. IBM (IBM)
98
14
d. Intel (INTC)
94
20
The price-earnings ratios of Cisco Systems and Qualcomm. Cisco was selling at $17.58 – 22 times its earnings. Qualcomm was selling at $61.48 with average earnings per share of $1.46. (a) What are the average earnings per share for Cisco? (b) What is the price-earnings ratio for Qualcomm? Round to the nearest whole number.
On December 31, 2005, the Chicago Sun-Times listed the Vanguard Growth Fund with an offer price of $22.58 and a 2% load fee. Sal Luna purchased 180 shares. What was his cost of the shares?
