Question 1

Mathematics Corp. will distribute $129,000 to its stockholders. There are 14,000 shares of 8% preferred stock, $80 par value, and 3,600 shares of common stock. What is the dividend per share to be paid to common stockholders?

Accepted Answer

$10.94;

Question 2

Mary is considering the purchase of 5 bonds. What is the market value of these bonds?
Face value of each bond: $500
Price per bond: 75.5%
Interest rate: 9.25%
Commission per $500 bond: $5

Accepted Answer

A)   $231.25
B)   $1,887.50
C)   $2,642.50
D)   $18,875 B

Question 3

Bill purchased 100 shares of stock at $24.05 per share. The commission is 2.5% of the total transaction. What is the total cost of the transaction?

Accepted Answer

$ 2,465.13; 
 100 * $24.05 = $2,405 
 0.025 * $2,405 = $60.13 
 $2,405 + $60.13 = $2,465.13

Question 4

Marty purchased 290 shares of stock at $11.55 per share. The commission is 4% for round lots and an additional 5% for odd lots. What is the total cost of the transaction?

Accepted Answer

A)   $51.75
B)   $92.40
C)   $3,349.50
D)   $3,493.65

Question 5

A corporation has 120,000 shares of common stock. The corporation had total earnings of $700,000, of which $250,000 was distributed to its stockholders. What is the earnings per share?

Accepted Answer

A)   $0.36
B)   $0.48
C)   $2.08
D)   $2.80

Question 6

What is the amount of the annuity due if there are payments of $100 semiannually for 9 years at 6%?

Accepted Answer

A)   $241.17
B)   $251.17
C)   $2,411.69
D)   $2,511.69

Question 7

A company reports net earnings of $3.10 on stock selling at $52.40. What is the price-earnings ratio? Round to the nearest whole number.

Accepted Answer

The answer of A company reports net earnings of $3.10...

Question 8

Flint purchased 430 shares of stock at $15.65 per share. The commission is 2.5% for round lots and an additional 4% for odd lots. What is the total cost of the transaction?

Accepted Answer

The answer of Flint purchased 430 shares of stock at...

Question 9

A company reports net earnings of $2.50 on stock selling at $45.25. Rounded to the nearest whole number, the price-earnings ratio is 12.

Accepted Answer

A) True 
 B)False

Question 10

Whitney is considering the purchase of 75 bonds. What is the commission on this transaction? 
 
 Face value of each bond: $850 
 Price per bond: 49.5% 
 Interest rate: 17.45% 
 Commission per $1,900 bond: $19

Accepted Answer

The answer of Whitney is considering the purchase of 75...

Question 11

Carla is considering the purchase of 35 bonds. What is the total expenditure for these bonds? 
 
 Face value of each bond: $1,150 
 Price per bond: 82.5% 
 Interest rate: 9.325% 
 Commission per $1,750 bond: $17.50

Accepted Answer

The answer of Carla is considering the purchase of 35...

Question 12

The Board of Directors of Ross Corp. has decided to distribute $300,000 to its stockholders. There are 62,000 shares of 6% preferred stock, $75 par value, and 4,800 shares of common stock. What is the dividend per share to be paid to common stockholders?

Accepted Answer

A)   $4.38
B)   $4.50
C)   $21,000
D)   $279,000

Question 13

Miguel has 200 shares of a cell phone company's common stock. There are dividends of $500,000 to be distributed among its common stockholders. There are 175,000 shares of common stock outstanding. How much will Miguel receive?

Accepted Answer

A)   $2.86
B)   $70
C)   $572
D)   $875

Question 14

Kaitlyn wants to have $25,000 in her sinking fund in 12 years at 8%. How much money should she make in quarterly payments?

Accepted Answer

The answer of Kaitlyn wants to have $25,000 in her...

Question 15

Brent Burns uses Excel to prepare overviews of his investors portfolios including the percent increase or decrease of each of their investments. How could Brent use the formatting in Excel to draw attention to any investments whose value decreased since their previous meeting?

Accepted Answer

The answer of Brent Burns uses Excel to prepare overviews...

Question 16

The present value of an annuity is the amount needed to invest _________ to receive a stream of payments for a given number of years in the __________.

Accepted Answer

The answer of The present value of an annuity is...

Question 17

A corporation has 125,500 shares of common stock. The corporation had total earnings of $1,460,000, of which $650,000 was distributed to its stockholders. What is the earnings per share?

Accepted Answer

The answer of A corporation has 125,500 shares of common...

Question 18

What is the present value of yearly payments of $1,500 at 10% in 7 years?

Accepted Answer

The answer of What is the present value of yearly...

Question 19

Jean wants to have $5,000 in her sinking fund in 8 years at 5%. How much money should she make in yearly payments?

Accepted Answer

A)   $1,160.05
B)   $852.30
C)   $572.35
D)   $523.60

Question 20

Read the following bond market report from left to right for South Bundett Corporation. Provide the information requested. 
 
 Bonds Current Yield Volume Traded Last Net Change 
 SoBun 7 a 18 8.2 48 57 +2 
 
 SoBuns __________________________________________________________ 
 
 7 __________________________________________________________ 
 
 a __________________________________________________________ 
 
 18 __________________________________________________________ 
 
 8.2 __________________________________________________________ 
 
 48 __________________________________________________________ 
 
 57 __________________________________________________________ 
 
 +2 __________________________________________________________

Accepted Answer

The answer of Read the following bond market report from...

Exam 12: Annuities, Stocks, and Bonds