Deck 21: Corporate Stocks

Question 1

Columbia Corporation stock has a par value of $47. If the corporation pays a 7% dividend, compute the amount of the dividend paid to the owner of 1,400 shares.​

Answer 1

$4,606​

Question 2

George Fuji bought 600 shares of TTV stock at $28. Commission charges were $0.20 per share. A dividend of $1.50 per share was paid this year. Compute the rate of yield. (Round answer to two decimal places.)​

Answer 2

5.32%​

Question 3

Ralph bought 100 shares of Meredian stock at $86; 100 shares of Lawson stock at 30.25; and 100 shares of Puritan stock at 22.50. Commission charges were $0.20 per share. Compute the total cost of the purchase.​

Answer 3

$13,935​

Question 4

Jorge sold 200 shares of Pacific stock at $21; 300 shares of Atlantic stock at $32; and 100 shares of Inland stock at $42. Commission charges were $0.20 per share. Compute the proceeds of the sale.​

Question 5

Assume a differential rate 12.5 cents for odd lot sales and purchases. Brian purchased 160 shares of PTG stock at $20. Commission charges were $0.20 per share. Compute the total purchase costs.​

Question 6

Jason bought 300 shares of Robot stock at $38. Commission charges were $0.20 per share. Compute the total cost of the purchase.​

Question 7

Stock of the ABC Corporation has a par value of $30. If the corporation pays a 6% dividend, compute the amount of the dividend per share.​

Question 8

Kevin sold 250 shares of Mountain stock at $23; 325 shares of ADS stock at $30; and 95 shares of Liberty stock at $43. Commission charges were $0.20 per share. Compute the proceeds of the sale.​

Question 9

Margaret Jones bought 1,000 shares of DVG stock at $26. Commission charges were $0.20 per share. A dividend of $1.10 per share was paid this year. Compute the rate of yield. (Round answer to two decimal places.)​

Question 10

Fern sold 800 shares of Atlantic stock at $14.25. Commission charges were $0.20 per share. Compute the proceeds of the sale.​

Question 11

Alan Jackson bought 300 shares of MTY stock at $47. Commission charges were $0.20 per share. A dividend of $1.70 per share was paid this year. Compute the rate of yield. (Round answer to two decimal places.)​

Question 12

Assume a differential rate of 12.5 cents for odd lot sales and purchases. Mark sold 250 shares of PFB stock at $62. Commission charges were $0.20 per share. Compute the proceeds of the sale.​

Question 13

Cynthia bought 200 shares of Atlantic stock at $14.70 and 100 shares of ITT stock at $18.25. Commission charges were $0.20 per share. Compute the total cost of the purchase.​

Question 14

Marge Nelson bought 400 shares of BRN stock at $34. Commission charges were $0.20 per share. A dividend of $2.20 per share was paid this year. Compute the rate of yield. (Round answer to two decimal places.)​

Question 15

Assume a differential rate 12.5 cents for odd lot sales and purchases. June purchased 150 shares of UNF stock at $23. Commission charges were $0.20 per share. Compute the total purchase costs.​

Question 16

Robot, Inc. closed Thursday at $37. The daily stock report in the local newspaper showed that on Friday Robot, Inc. had a high of 42.64, a low of 36.72, and closed at $39.12. Compute the amount that the net change column for Friday will show.​

Question 17

Jim bought 300 shares of Nelson stock at $14.25. Commission charges were $0.20 per share. Compute the total cost of the purchase.​

Question 18

McDonald's stock closed Wednesday at $26.75. The daily stock report in the local newspaper showed that on Thursday McDonalds had a high of 27, a low of 24, and closed at $26.15. Compute the amount that the net change column for Thursday will show.​

Question 19

Stock of the XYZ Corporation has a par value of $50. If the corporation pays a 5% dividend, compute the amount of the dividend paid to the owner of 160 shares.

Question 20

Stock of the Boston Corporation has a par value of $20. If the corporation pays a 7% dividend, compute the amount of the dividend paid to the owner of 762 shares.​

Question 21

Channing Company
​
The Channing Company earned $64,000 last year. The capital stock of the company consists of $500,000 of 8% preferred stock and $200,000 of common stock. The directors declare a dividend of the entire earnings.
​
Refer to Channing Company. Compute the total amount that will be paid to the holders of preferred stock.

Question 22

Fuller Company
​
The Fuller Company earned $106,000 last year. The capital stock of the company consists of $500,000 of 6% preferred stock and $1,200,000 of common stock. The directors declare a dividend of the entire earnings.
​
Refer to Fuller Company. Compute the total amount that will be paid to the holders of preferred stock.

Question 23

George Fuji bought 400 shares of TTV stock at $28. He sold the stock at $34. Commission charges were $0.20 per share. Compute the dollar amount of gain or loss.​

Question 24

Scott Company
​
The Scott Company earned $120,000 last year. The capital stock of the company consists of $400,000 of 7% preferred stock and $200,000 of common stock. The directors declared a dividend of 60% of the earnings.
​
Refer to Scott Company. Compute the total amount that will be paid to the holders of common stock.​

Question 25

Scott Company
​
The Scott Company earned $120,000 last year. The capital stock of the company consists of $400,000 of 7% preferred stock and $200,000 of common stock. The directors declared a dividend of 60% of the earnings.
​
Refer to Scott Company. Compute the total amount that will be paid to the holders of preferred stock.​

Question 26

Blue Well Company
​
The Blue Well Company earned $48,000 last year. The capital stock of the company consists of $300,000 of 7.5% preferred stock and $150,000 of common stock. The directors declare a dividend of half of the entire earnings.
​
Refer to Blue Well Company. Compute the total amount that will be paid to the holders of common stock.​

Question 27

Fuller Company
​
The Fuller Company earned $106,000 last year. The capital stock of the company consists of $500,000 of 6% preferred stock and $1,200,000 of common stock. The directors declare a dividend of the entire earnings.
​
Refer to Fuller Company. Compute the total amount that will be paid to the holders of common stock.​

Question 28

Marge Nelson bought 300 shares of BRN stock at $34. She sold the stock at $35. Commission charges were $0.20 per share. Compute the dollar amount of gain or loss.​

Question 29

Channing Company
​
The Channing Company earned $64,000 last year. The capital stock of the company consists of $500,000 of 8% preferred stock and $200,000 of common stock. The directors declare a dividend of the entire earnings.
​
Refer to Channing Company. Compute the total amount that will be paid to the holders of common stock.​

Question 30

Pratt Company
​
The Pratt Company earned $140,000 last year. The capital stock of the company consists of $600,000 of 8% cumulative preferred stock and $600,000 of common stock. The directors declared a dividend of half of the earnings. During the previous year, the company earned only enough to pay a 6% dividend on preferred stock.
​
Refer to Pratt Company. Compute the total amount that will be paid to the holders of common stock?​

Question 31

​Hybrid Company
​
The Hybrid Company earned $52,000 last year. The capital stock of the company consists of $300,000 of 7% cumulative preferred stock and $200,000 of common stock. The directors declared a dividend of the entire earnings. During the previous year, the company earned only enough to pay a 2% dividend on preferred stock.
Refer to Hybrid Company. What is the total amount that will be paid to the holders of preferred stock?​

Question 32

Columbia Company
​
The Columbia Company earned $1,400,000 last year. The capital stock of the company consists of $8,000,000 of 6% cumulative preferred stock and $15,000,000 of common stock. The directors declared a dividend of the entire earnings. During the previous year, the company earned $240,000 and the directors declared a dividend of the entire earnings.
​
Refer to Columbia Company. What is the total amount that will be paid to the holders of common stock?​

Question 33

​Hybrid Company
​
The Hybrid Company earned $52,000 last year. The capital stock of the company consists of $300,000 of 7% cumulative preferred stock and $200,000 of common stock. The directors declared a dividend of the entire earnings. During the previous year, the company earned only enough to pay a 2% dividend on preferred stock.
Refer to Hybrid Company. What is the total amount that will be paid to the holders of common stock?​

Question 34

Sam Cooper bought 200 shares of MTV stock at $54. He sold the stock at $52. Commission charges were $0.20 per share. Compute the dollar amount of gain or loss.​

Question 35

Pratt Company
​
The Pratt Company earned $140,000 last year. The capital stock of the company consists of $600,000 of 8% cumulative preferred stock and $600,000 of common stock. The directors declared a dividend of half of the earnings. During the previous year, the company earned only enough to pay a 6% dividend on preferred stock.
​
Refer to Pratt Company. What is the total amount that will be paid to the holders of preferred stock?​

Question 36

Sam Hanson bought 600 shares of DVG stock at $27. He sold the stock at $32. Commission charges were $0.20 per share. Compute the dollar amount of gain or loss.​

Question 37

Blue Well Company
​
The Blue Well Company earned $48,000 last year. The capital stock of the company consists of $300,000 of 7.5% preferred stock and $150,000 of common stock. The directors declare a dividend of half of the entire earnings.
​
Refer to Blue Well Company. Compute the total amount that will be paid to the holders of preferred stock.

Question 38

Columbia Company
​
The Columbia Company earned $1,400,000 last year. The capital stock of the company consists of $8,000,000 of 6% cumulative preferred stock and $15,000,000 of common stock. The directors declared a dividend of the entire earnings. During the previous year, the company earned $240,000 and the directors declared a dividend of the entire earnings.
​
Refer to Columbia Company. What is the total amount that will be paid to the holders of preferred stock?​

Question 39

Swartz Company
​
The Swartz Company earned $30,000 last year. The capital stock of the company consists of $200,000 of 7% preferred stock and $100,000 of common stock. The directors declare a dividend of half of the entire earnings.​
Refer to Swartz Company. Compute the total amount that will be paid to the holders of preferred stock.

Question 40

Swartz Company
​
The Swartz Company earned $30,000 last year. The capital stock of the company consists of $200,000 of 7% preferred stock and $100,000 of common stock. The directors declare a dividend of half of the entire earnings.​
Refer to Swartz Company. Compute the total amount that will be paid to the holders of common stock.​

Question 41

Bob Wright
​
Bob Wright owned 100 shares of Lawson Company's convertible preferred stock at $10 par value. He converted each share of preferred stock into three shares of common stock.
​
Refer to Bob Wright. If common stock was selling at $4 per share on the date of conversion, compute Bob Wright's common stock worth.​

Question 42

John purchased 400 shares of MMM stock at 78. One year later he sold all 400 shares at 82. He paid a transaction fee of $19.95 for each transaction. What was his gain or loss on the sale?​

Question 43

Stock Listing
​
Use the following stock listing to answer the questions.
​ ​
Refer to Stock Listing. What is the PE ratio if EXN has earnings per share of $1.89?​

Question 44

Bob Wright
​
Bob Wright owned 100 shares of Lawson Company's convertible preferred stock at $10 par value. He converted each share of preferred stock into three shares of common stock.
​
Refer to Bob Wright. Compute the number of shares of common stock Bob Wright received when he converted the shares.​

Question 45

Bob Wright
​
Bob Wright owned 100 shares of Lawson Company's convertible preferred stock at $10 par value. He converted each share of preferred stock into three shares of common stock.
​
Refer to Bob Wright. If the convertible preferred stock paid 7% annually and the common stock pays $0.40 a share this year, how much more dividend will Bob Wright receive this year because of his conversion?​

Question 46

Buckley Company
​
The Buckley Company earned $110,000 last year. The capital stock of the company consists of $300,000 of 9% cumulative preferred stock and $200,000 of common stock. The directors declared a dividend of 60% of the earnings. For the previous year, the directors did not declare a dividend at all.
​
Refer to Buckley Company. Compute the total amount that will be paid to the holders of preferred stock.​

Question 47

Mary Lee
​
Mary Lee owned 500 shares of Dugan Company's convertible preferred stock at $20 par value. She converted each share of preferred stock into four shares of common stock.
​
Refer to Mary Lee. If the convertible preferred stock paid 9% annually and the common stock pays $1.00 a share this year, how much more dividend will Mary Lee receive this year because of her conversion?

Question 48

Mary Lee
​
Mary Lee owned 500 shares of Dugan Company's convertible preferred stock at $20 par value. She converted each share of preferred stock into four shares of common stock.
​
Refer to Mary Lee. If Mary Lee paid $20 per share for her preferred stock, and if common stock was selling at $50 per share on the date of conversion, compute the amount that Mary Lee's investment increased in value.​

Question 49

Buckley Company
​
The Buckley Company earned $110,000 last year. The capital stock of the company consists of $300,000 of 9% cumulative preferred stock and $200,000 of common stock. The directors declared a dividend of 60% of the earnings. For the previous year, the directors did not declare a dividend at all.
​
Refer to Buckley Company. Compute the total amount that will be paid to the holders of common stock.​

Question 50

Kelly Jordan
​
Kelly Jordan owned 220 shares of Diego Company's convertible preferred stock at $50 par value. He converted each share of preferred stock into two shares of common stock.
​
Refer to Kelly Jordan. Compute the number of shares of common stock Kelly Jordan received when he converted.​

Question 51

Mary Lee
​
Mary Lee owned 500 shares of Dugan Company's convertible preferred stock at $20 par value. She converted each share of preferred stock into four shares of common stock.
​
Refer to Mary Lee. Compute the number of shares of common stock that Mary Lee received when she converted.

Question 52

May purchased 500 shares of XYZ stock at $31.45. One year later she sold the 500 shares at $26.97. She paid a transaction fee of $19.95 for each transaction. What was her gain or loss on the sale?​

Question 53

Stock Listing
​
Use the following stock listing to answer the questions.
​ ​
Refer to Stock Listing. What is the rate of yield for the EXN stock? (Round to nearest tenth of a percent.)​

Question 54

Stock Listing
​
Use the following stock listing to answer the questions.
​ ​
Refer to Stock Listing. What was the closing price of the previous day?​

Question 55

Bob Wright
​
Bob Wright owned 100 shares of Lawson Company's convertible preferred stock at $10 par value. He converted each share of preferred stock into three shares of common stock.
​
Refer to Bob Wright. If Bob Wright paid $10 per share for his preferred stock, and if common stock was selling at $4 per share on the date of conversion, compute the amount that Bob Wright's investment increased in value.​

Question 56

Kelly Jordan
​
Kelly Jordan owned 220 shares of Diego Company's convertible preferred stock at $50 par value. He converted each share of preferred stock into two shares of common stock.
​
Refer to Kelly Jordan. If Kelly Jordan paid $50 per share for his preferred stock, and if common stock was selling at $31 per share on the date of conversion, compute the amount that Kelly Jordan's investment increased in value.​

Question 57

Kelly Jordan
​
Kelly Jordan owned 220 shares of Diego Company's convertible preferred stock at $50 par value. He converted each share of preferred stock into two shares of common stock.
​
Refer to Kelly Jordan. If common stock was selling at $31 per share on the date of conversion, compute Kelly Jordan's common stock worth.​

Question 58

Stock Listing
​
Use the following stock listing to answer the questions.
​ ​
Refer to Stock Listing. How many shares were sold?​

Question 59

Kelly Jordan
​
Kelly Jordan owned 220 shares of Diego Company's convertible preferred stock at $50 par value. He converted each share of preferred stock into two shares of common stock.
​
Patrick Harrigan owned 200 shares of Marsh Company's convertible preferred stock at $12 par value. He converted each share of preferred stock into two shares of common stock. If the convertible preferred stock paid 8% annually and the common stock pays $0.60 a share this year, how much more dividend will Patrick Harrigan receive this year because of his conversion.

Question 60

Mary Lee
​
Mary Lee owned 500 shares of Dugan Company's convertible preferred stock at $20 par value. She converted each share of preferred stock into four shares of common stock.
​
Refer to Mary Lee. If common stock was selling at $50 per share on the date of conversion, compute Mary Lee's common stock worth.​

Question 61

John purchased 400 shares of MTC stock at 30.50. One year later she sold the 400 shares at 25.75. She paid a transaction fee of $19.95 for each transaction. What was her gain or loss on the sale?​

Question 62

Marge Brown bought 200 shares of Kenworth $50 par 7% preferred stock at the current market price of $58 per share. What is her rate of yield if Kenworth pays the regular dividend for the year?​

Question 63

Parliament Corporation
​
Parliament Corporation's capital consists of 25,000 shares of $100 par 8% preferred stock and 75,000 shares of no-par common stock. The board of directors declared a dividend of $293,750.
​
Refer to Parliament Corporation. Calculate the dividend per share for preferred stock.​

Question 64

Parliament Corporation
​
Parliament Corporation's capital consists of 25,000 shares of $100 par 8% preferred stock and 75,000 shares of no-par common stock. The board of directors declared a dividend of $293,750.
​
Refer to Parliament Corporation. Calculate the dividend per share for common stock.​

Question 65

Beth Martin bought 300 shares of Alpha $50 par 6% preferred stock at the current market price of $59 per share. What is her rate of yield if Alpha pays the regular dividend for the year?

Question 66

Paula Jones bought 400 shares of Smartlook $55 par 7% preferred stock at the current market price of $60 per share. What is her rate of yield if Smartlook pays the regular dividend for the year?​