a.

Sarah and James Hernandez purchased 310 shares of Macys stock at $18 a share. One year later, they sold the stock for $24.60 a share. They paid a broker a commision of $6 when they purchased the stock and a commision of $11 when they sold the stock. During the 12-month period the couple owned the stock, Macys paid dividends that totaled $0.70. Calculate the Hernandez total return for this investment.

Total return

$

b.

Wanda Sotheby purchased 150 shares of Home Depot stock at $51 a share. One year later, she sold the stock for $60 a share. She paid her broker a commision of $40 when she purchased the stock and a commision of $47 when she sold it. During the 12 months she owned the stock, she received $130 in dividends. Calculate Wandas total return on this investment.

Total return

$

c.

In September, the board of directors of Chaparral Steel approved a 2-for-1 stock split. After the split, how many shares of Chaparral Steel stock will an investor have if he or she owned 500 shares before the split?

Post-split shares:______

d.

Ford Motor Company has a 1.55 beta. If the overall stock market increases by 6 percent, how much will Ford change? (Enter your answer as a percent rounded to 1 decimal place.)

Volatility for Ford Motor company stock:

%

(I keep getting 7.55%, but its incorrect :/)

e.

Michelle Townsend owns stock in National Computers. Based on information in its annual report, National Computers reported after-tax earnings of $7,100,000 and has issued 2,840,000 shares of common stock. The stock is currently selling for $40 a share.

e1.	Calculate the earnings per share for National Computers. (Round your final answer to 2 decimal places.)

Earnings per share

$

e2.	Calculate the price-earnings (PE) ratio for National Computers. (Use the rounded earnings per share from part a. Round your final answer to 2 decimal places.)

Price-earnings ratio