Personal Finance Chapters 13-15
Jackie Martin purchased three $1,000 corporate bonds issued by J. C. Penney. The bonds pay 4.60 percent and mature in 2037. What is the total dollar amount of interest Jackie will receive for her three bonds each year? (Do not round intermediate calculations.)
($1000 * .046) = $46 ($46 * 3) = $138
Assume that you purchased a corporate bond with a face value of $1,000. The interest rate is 5.50 percent. What is the dollar amount of annual interest you will receive each year?
($1000 * .055) = $55
Total assets $220,000,000 Total liabilities $8,260,000 Total number of shares 4,850,000 Given this information, calculate the net asset value for the Boston Equity mutual fund. (Round your answer to 2 decimal places.)
($220,000,000 - $8,260,000) / 4,850,000 = $43.66
After researching Best Buy common stock, Sally Jackson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 450 shares of Best Buy. At the time of the sale, a share of common stock had a value of $58. Three months later, Best Buy is selling for $53 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $81. What is her profit for this short transaction? (Loss amount should be indicated with minus sign.)
($58 - $53) = $5 ($5 * 450) = $2250 ($2250 - $81) = $2169
Mary Canfield purchased the New Dimensions bond fund. While this fund doesn't charge a front-end load, it does charge a contingent deferred sales load of 4.0 percent for any withdrawals in the first five years. Mary withdraws $8,300 during the second year. How much is the contingent deferred sales load? (Round your answer to 2 decimal places.)
($8,300 * .04) = $332
In March, stockholders of 3D Systems Corporation approved a 5-for-2 stock split. After the split, how many shares of 3D Systems stock will an investor have if she or he owned 1,010 shares before the split? (Do not round intermediate calculations.)
(1010 * 5) = 5050 (5050 / 2) = 2525
Assume that one year ago, you bought 210 shares of a mutual fund for $15.00 per share, you received a $0.45 per-share capital gain distribution during the past 12 months, and the market value of the fund is now $19. Calculate the total dollar return for this investment if you were to sell it now. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
(210 * $0.45) = $94.5 ($19 - $15) * 210 = $840 ($840 + $94.5) = $934.5
Betty and John Martinez own 450 shares of ExxonMobil common stock. ExxonMobil's annual dividend is $1.54 per share. What is the amount of the dividend check the Martinez couple will receive for this year? (Round your answer to 2 decimal places.)
(450 * $1.54) = $693
Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $56 a share, plus a total commission of $32 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.15 per share for the first year and $1.23 per share the second year. Also, assume that at the end of two years, you sold your Coca-Cola stock for $60 a share minus a total commission of $39 to sell the stock. (a) Calculate the dividend yield for your Coca-Cola stock at the time you purchased it. (Enter your answer as a percent rounded to 2 decimal places.) (b) Calculate the dividend yield for your Coca-Cola stock at the time you sold it. (Enter your answer as a percent rounded to 2 decimal places.) (c) Calculate the total return for your Coca-Cola investment when you sold the stock at the end of two years. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) (d) Calculate the annualized holding period yield for your Coca-Cola investment at the end of the two-year period. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
(a)
Eight years ago, Burt Brownlee purchased a U.S. government bond that pays 4.00 percent interest. The face value of the bond was $1,000. (a) What is the dollar amount of annual interest that Burt received from his bond investment each year? (Round your answer to 2 decimal places.) (b) Assume that comparable bonds are paying 4.20 percent. What is the approximate dollar price for which Burt could sell his bond? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
(a) ($1000 * .04) = $40 (b) ($40 / .042) = $952.38
Three years ago, you purchased 204 shares of IBM stock for $151 a share. Today, you sold your IBM stock for $163 a share. For this problem, ignore commissions that would be charged to buy and sell your IBM shares and dividends you might have received as a shareholder. (a) What is the amount of profit you earned on each share of IBM stock? (b) What is the total amount of profit for your IBM investment?
(a) ($163 - $151) = $12 (b) (204 * 163) - (204 * $151) = $2448
According to the financial statements for Samson Electronics, Inc., the firm has total assets valued at $239 million. It also has total liabilities of $186 million. Company records indicate that the firm has issued 11 million shares of stock. (a) Based on the above information, calculate the book value per share of Samson Electronics. (Round your answer to 2 decimal places.) (b) If a share of Samson Electronics, Inc., currently has a market value of $25 a share, what is the market-to-book ratio? (Round your intermediate calculation and final answer to 2 decimal places.)
(a) ($239mil - $186mil) / $11mil = 4.82 (b) ($25 / 4.82) = 5.19
