1.

Your discount brokerage firm charges $7.95 per stock trade.

How much money do you need to buy 200 shares of Pfizer, Inc. (PFE), which trades at $31.40? (Round your answer to 2 decimal places.)

Amount needed

$

2

Your full-service brokerage firm charges $140 per stock trade.

How much money do you receive after selling 200 shares of Nokia Corporation (NOK), which trades at $20.13?

Amount received

$

3

You would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $3.96 and $3.93, respectively. You place a market buy order for 500 shares that executes at these quoted prices.

How much money did it cost to buy these shares?

Cost of shares

$

4

You would like to sell 200 shares of Xenith Bankshares, Inc. (XBKS). The current ask and bid quotes are $4.66 and $4.62, respectively. You place a limit sell order at $4.65.

If the trade executes, how much money do you receive from the buyer?

Money received

$

5Problem 8-11 Value of a Preferred Stock (LG8-5)

A preferred stock from Duquesne Light Company (DQUPRA) pays $3.55 in annual dividends.

If the required return on the preferred stock is 6.7 percent, whats the value of the stock? (Round your answer to 2 decimal places.)

Value of stock

$

6

Ultra Petroleum (UPL) has earnings per share of $1.56 and a P/E ratio of 32.48.

Whats the stock price? (Round your answer to 2 decimal places.)

Stock price

$