Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Calculate the total annual interest, total cost, and current yield for the bonds. (Round the Current yield to the nearest tenth percent and other

1. Calculate the total annual interest, total cost, and current yield for the bonds. (Round the "Current yield" to the nearest tenth percent and other answers to the nearest whole dollar.)

Bond

Number of bonds purchased

Selling price

Total annual interest

Total cost

Current yield

Muni 5 22

6

81.375

$

$

%

2. XYZ Corporation has issued 575,999 shares of common stock and 100,000 shares of cumulative preferred stock. Annual dividends on the cumulative preferred stock are $4 per share. Last year, dividends of $2.50 per share were paid to preferred stockholders. This year the company has $1,990,000 net income and the board of directors decide to distribute 60% of net income as dividends. If you own 300 shares of common stock in XYZ Corporation, what will the total amount of your annual dividend be? Round your final answer to the nearest dollar.

3. You purchased 500 shares of stock six years ago at $21.25 and incurred brokerage fees of $345. You received annual dividends of 27 cents per share. You just sold the stock for $54 and incurred brokerage fees totaling $518, immediately after receiving the sixth annual dividend. Calculate your rate of return.

4. Eight years ago, Natalia purchased an 8.25% $1,000 bond for 107 1/2 plus brokerage fees totaling $28. Natalia received interest checks semiannually. Immediately after receiving her 16th interest check, she sold the bond for 114 less brokerage fees totaling $55. Calculate Natalia's rate of return.

5. Suppose you invest $50 each month (starting today) into a mutual fund. You reinvest distributions. At the end of 5 years, you sell all your shares and receive $3,485. Calculate your rate of return.

I usually post one question at a time but right I really need the answers since my homework is due in 30 minutes. Please answer all. God bless!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Unlocking Private Company Wealth

Authors: Z. Christopher Mercer, Jim Clifton

1st Edition

097006988X, 978-0970069887

More Books

Students also viewed these Finance questions