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Exam 21: Stocks, Bonds, and Mutual Funds

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Question 41

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Bond quotes are stated in percents of face value.

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Question 42

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Calculate the current yield of this bond: $\begin{array} { | l | l | l | l | l | } \hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \\\hline \text { Action 11 \quad22 } & ? & 10 & 102 & + 1.25 \\\hline\end{array}$

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Question 43

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Assume $1.19 EPS. Calculate the yield percent (round to the nearest tenth percent). $\begin{array} { | c | c | c | c | c | c | c | c | c | } \hline { \text { 52 Weeks } } & \begin{array} { c } \text { Stock } \\\text { (Sym) }\end{array} & \text { DIV } & \begin{array} { c } \text { YLD } \\\%\end{array} & \text { PE } & \begin{array} { c } \text { Volume } \\( 100 \text { 's } )\end{array} & \text { Close } & \begin{array} { c } \text { Net } \\\text { Change }\end{array} \\\hline \text { HI } \mid \text { LO } & & & & & & & \\\hline 34 \mid 21.56 & \text { Kellogg K } & 1.01 & & ? & 10103 & 32.13 & - 0.07 \\\hline\end{array}$

Jangles Co. earned $1.80 per share. Assuming a closing price of $40, the PE ratio is (round to the nearest whole answer) :

Ron bought one bond of Bee Company for 82.25. The original bond was 6 3/4 15. The current yield is (to the nearest tenth of a percent) :

Linda Summers bought four bonds of AMT Co. 11 3/4 18 at 85 and five bonds of RT Co. 14 S 17 for 91. If the commission on the bonds is $2.50 per bond, what was the total cost of all the purchases?

Assume the company earns $.70 per share. What was the lowest price at which stock traded for the year? $\begin{array} { | c | c | c | c | c | c | c | c | c | } \hline { 52 \text { Weeks } } & \begin{array} { c } \text { Stock } \\\text { (Sym) }\end{array} & \text { DIV } & \begin{array} { c } \text { YLD } \\\%\end{array} & \text { PE } & \begin{array} { c } \text { Volume } \\\left( 100 ^ { \prime } \text { s } \right)\end{array} & \text { Close } & \begin{array} { c } \text { Net } \\\text { Change }\end{array} \\\hline \text { HI } \mid \text { LO } & & & & & & & \\\hline 13.57 \mid 8.38 & \text { Shoreline HLT } & .08 & & ? & 13411 & 11.19 & - 0.25 \\\hline\end{array}$

Ace Corporation pays its cumulative preferred stock $1.95 per share. There are 40,000 shares of preferred and 80,000 shares of common. In 2016, 2017, and 2018, because of slowdowns in the economy, Ace paid no dividends. Now, in 2019, the board of directors has decided to pay out $600,000 in dividends. The common stockholders receive:

Angel Hart bought 190 shares of a mutual fund with an NAV of $14.10. This fund also has a load charge of 6 3/4%. (A)What is the offer price (round to the nearest cent), and (B)what did Angel pay for the investment?

The bond of Tuckpeck is 8¼ 14. The bond traded for a high of 93.25 and closed at 93. The current yield of the bond to the nearest tenth of a percent is:

Joe Boyd is considering whether to buy stocks or bonds. The stock he is looking at is trading at $43.50 with an annual dividend of $3.60. The bond is trading at 92.125 with an annual interest rate of 8 3/4%. Can you calculate for Joe his rate of return to the nearest hundredth percent for stocks and bonds? Which is the better rate of return?

The current yield on a bond is the yearly interest of the bond divided by the cost of the bond at closing.

The price-earnings ratio is calculated by the closing price per share of stock divided by:

Bee Sting bought 400 shares of Google at $1238.16 per share. Assume a commission of 2% of the purchase price. What is the total to Bee?

Al Roy bought five bonds of Jort Co. 11 3/4 at 93.25 and four bonds of Inst. System 12 3/4 for 81.125. If the commissions on the bonds are $2.50 per bond, the total cost of all the purchases is:

Assume that a bond sells at 98 ½ (pays 15% interest). If Bill Smith buys four bonds (assume no commission), what is the total dollar cost?

Is the below bond trading at a premium or a discount? $\begin{array} { | l | l | l | l | l | } \hline \text { Bond } & \text { Current Yield } & \text { Vol } & \text { Close } & \text { Net Change } \\\hline \text { NDon }7\frac {\text { 1}} { \text {2 } }\quad23 & & 12 & 67.50 & - 8 \\\hline\end{array}$

The NAV is the dollar value of 10 shares of a mutual fund.

A mutual fund is an investment company that buys stocks and bonds and then sells shares in those securities to the public.

In April, Sandi sold 1,600 shares of Federal Express at $105.00 per share. In May, the stock reached a low during the Great Recession and was selling for $32.00 per share. Sandi used the proceeds from the sale and repurchased Federal Express at $32.00 per share in May. What is the value of Sandi's stock holdings in Federal Express if the shares are selling for $91.00 today?