Review 1­6 to 1­9.notebook
September 15, 2015
Bellwork 9-15-15
True or False?
1. In a reverse stock split, the number of outstanding shares is
reduced while the market price per share stays the same.
2. When there is a fractional part of a share, the company will
buy the fractional share at current prices, because fractional
shares are not traded.
1
Review 1­6 to 1­9.notebook
September 15, 2015
Vito owned 1414 shares of a stock before the corporation instituted a
6-for-7 split. Before the split, the stock was selling at $21 a share.
How many shares does Vito have and what is the price per share?
2
Review 1­6 to 1­9.notebook
September 15, 2015
Leon purchased 4,755 shares of stock at a price of $11.45 a share. He
sold the stock six years later at a price of $19.78 per share. What is
his capital gain rounded to the nearest tenth of a percent?
3
Review 1­6 to 1­9.notebook
September 15, 2015
Eleanor purchased $3,578 worth of stock and paid her broker a 0.5%
fee. She sold the stock when the stock price increased to $6,253 using
an online broker that charged $7 per trade. What are her net proceeds?
4
Review 1­6 to 1­9.notebook
September 15, 2015
Marcy owns common stock in Rex‛s Pet Planet. The annual dividend
is $3.05. The current price is $7.57. What is the yield of the
stock?
5
Review 1­6 to 1­9.notebook
September 15, 2015
Sunni bought a $1500 corporate bond. The bond pays 3.75%
interest per year. If Sunni holds the bond for 20 years, how
much will Sunni receive in interest?
6
Review 1­6 to 1­9.notebook
September 15, 2015
One share of Kimco‛s common stock pays an annual dividend of
$3.43. Today, Kimco closed at $27.09 with a net change of
+0.72. What is the stock yield at yesterday‛s closing price?
7
Review 1­6 to 1­9.notebook
September 15, 2015
A stock that was selling for $57 a share split 2-for-1. Before
the split, the company had 3.7 million shares of stock
outstanding. What is the post-split number of shares outstanding?
What is the post-split price per share?
8
Review 1­6 to 1­9.notebook
September 15, 2015
McKenzie buys 350 shares of stock for $17 a share and pays a
2% commission. She sells the stock 3 years later for $21 a share
and pays a .5% commission. What are her net proceeds?
9
Review 1­6 to 1­9.notebook
September 15, 2015
10
Review 1­6 to 1­9.notebook
September 15, 2015
11
Review 1­6 to 1­9.notebook
September 15, 2015
Homework: Study for THURSDAY's Test!
Complete all missing assignments!
14 Questions
6 True/False
4 Multiple Choice
4 Short Answer
12