URGENT HOMEWORK DUE IN 9 HOURS

Math 034 First Letter of Last Name Homework #7 Full Name ___________________________ Due Wednesday 10/28/15 Section _____________________________

1. (Section 6.3) 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. (Section 6.3) 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. (Section 7.1) 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. (Section 7.1) 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. (Section 7.1) 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. (Section 7.1) 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. (Section 7.2) 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. (Section 7.2) 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. (Section 7.2) Alicia’s grandmother bought a $100 face value savings bond for $50 when Alicia was born. On Alicia’s 21

st birthday, she cashed the bond in for $141.20. What effective rate of compound interest did she earn

on this bond?