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Stocks and Bonds
Chapter Review

1 .       Bond quotes are given in fractions with denominator of 8. What are the decimal equivalents of the following fractions: 1/8, 3/8, 5/8. 

 
 
 
 


2 .       What is the difference between a high and a low stock price of 41.88 and 29.75? 

 
 
 
 


3 .       Ames Electric has issued 30,000 shares of cumulative preferred stock that pays $0.40 per share and 150,000 shares of common stock. This year $240,000 is available for dividends. How much will each common stockholder get per share of stock? 

 
 
 
 


4 .       Ames Electric has a $1.78 per share dividend. The day's closing price is 18.63. What is the current stock yield? 

 
 
 
 


5 .       Madison Utilities has a closing price of 18.63 and an annual net income per share of $1.56. What is the PE ratio? 

 
 
 
 


6 .       Your broker charges 3% of the stock price for trading round lots and an additional 1% on the odd-lot portion. You buy 350 shares of Prudential at $87 per share. How much is the broker's commission? 

 
 
 
 


7 .       After holding your 350 Prudential stocks for one year, you sell them for $104. Your broker charges 3% for selling round lots and an additional 1% for odd lots. How much are your proceeds from the sale? 

 
 
 
 


8 .       Marty Owens bought 300 shares of Hoyt Electric for $6,000. His proceeds when he sold them one year later were $8,015. His dividends during the year were $678. What was his return on investment without regard to broker commissions? 

 
 
 
 


9 .       What does a net change of -3/4 mean in the bond table? 

 
 
 
 


10 .       Find the ROI for a stock that earns $153 in dividends and costs $962.50. The commission for purchasing the stock is $50. 

 
 
 
 


11 .       Mary invests $10,000 in bonds. She will have to pay $5 per bond in commissions. She buys XAT13.5 02. How much is the commission? 

 
 
 
 






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