Home > Stocks and Bonds > Stocks >
     
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? 

 
 
 
 


2 .       In question 1, how much will be paid per share to common stockholders? 

 
 
 
 


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. 

 
 
 
 


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. 

 
 
 
 


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. 

 
 
 
 






Copyright © 1995-2008, Pearson Education, Inc., publishing as Pearson Prentice Hall Legal and Privacy Terms