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Stocks and Bonds
Stocks
1 .
A company has issued 10,000 shares of cumulative preferred stock that earns dividends at $0.50 per share, and 90,000 shares of common stock. Last year no dividends were paid. This year $250,000 is available for dividends. How much will be paid to preferred stock holders?
$4,000
$4,500
$5,000
$10,000
2 .
In question 1, how much will be paid per share to common stockholders?
$2.50 per share
$3.50 per share
$2.67 per share
$1.72 per share
3 .
A stock has a $2.24 per share dividend. The day's closing price is 18.25. Calculate the current stock yield to the nearest tenth of a percent.
10.0%
12.5%
12.3%
15%
4 .
Your broker charges 3% of the stock price for trading round lots and an additional 1% on the odd-lot portion. How much would it cost to buy 150 shares of AMEX at $48 per share.
$7,390
$7,488
$7,416
$4,992
5 .
Referring to question 4, if you sell this stock one year later for $65 per share, how much are your proceeds. Assume the seller does not have to pay a brokerage fee.
$2,500.00
$9,750.00
$2,550.00
$2,360
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