1. Suppose that Lily, Joshua, and Burt own a bike shop that they have set up as a business partnership. They agree to distribute their profits in unequal shares because Joshua works the most hours and Burt does the accounting. They agree to distribute the profits as follows: Lily (7 parts), Joshua (12 parts), Burt (11 parts). The bike shop earned $32,000 last month. How much does each person receive?
2. Fastlane Car Rental earned $835,000 in the last quarter, and the company's management declared a dividend of $405,000. The company has 540,000 shares of stock issued. If you own 164 shares, how much will you receive as a dividend?
3. Mocha Crunch Bakery paid its shareholders a dividend of $1.12 per share in the last quarter and $4.25 per share in the last year. The market price per share of Mocha Crunch Bakery is currently $36.59.
a. Calculate the stock's current dividend yield.
b. Calculate the stock's trailing dividend yield.
4. Eleven years ago, I invested $10,000 in the stock of Butterfly Hollow Corporation. I sold the stock today for $14,195. What compound annual growth rate does this represent?
5. Nine years ago, I bought stock in Clementine Enterprises for $20.25 per share. The stock has split 2 for 1 twice, and now trades for $14.05 per share. What compound annual growth rate does my capital gain represent?
6. Fifteen years ago, I invested $2,500 in a dividend reinvestment plan offered by my local electric utility company. The value of my original investment, including reinvested dividends, has grown to $4,746.16. What was my total rate of return?
7. On September 1, 2015, Havershire Inc. issued a $5,000 par value bond with a 3% coupon rate and a September 1, 2030 maturity date. Interest will be paid semiannually. How much total interest will the owner of this bond receive?
8. Viking Shield Solutions issued a $2,000 par value bond with a 4 3/8% coupon rate. Interest payments are made semiannually. Suppose that one of these bonds sells for $1,950.79. What is the current yield?
9. Alicia's grandmother bought a $100 face value savings bond for $50 when Alicia was born. On Alicia's 21st birthday, she cashed the bond in for $141.20. What effective rate of compound interest did she earn on this bond?