Questions from General Investment

Q: Bruce buys $5,000 of Sketchy Corporation stock. Unfortunately

Bruce buys $5,000 of Sketchy Corporation stock. Unfortunately, a major newspaper reveals the very next day that the company is being investigated for accounting fraud, and the stock price falls by 50%...

Q: An investor deposits $20,000 into a new brokerage account

An investor deposits $20,000 into a new brokerage account. The investor buys 1,000 shares of Tipco stock for $19 per share. Two weeks later, the investor sells the Tipco stock for $20 per share. When...

Q: Ron’s Rodents Co. has total assets of $5 million,

Ron’s Rodents Co. has total assets of $5 million, total short- and long-term debt of $2.8 million, and $400,000 worth of 8% preferred stock outstanding. What is the firm’s total book value? What would...

Q: Assume that an investor buys 100 shares of stock at $45

Assume that an investor buys 100 shares of stock at $45 per share, putting up a 65% margin. If the stock rises to $60 per share, what is the investor’s new margin (expressed as a percentage and as a d...

Q: Lockhart’s Bookstores is trading at $45 per share. There are

Lockhart’s Bookstores is trading at $45 per share. There are 280 million shares outstanding. What is the market capitalization of this company?

Q: Build a spreadsheet containing the following quoted information. Based on the

Build a spreadsheet containing the following quoted information. Based on the information given, what is the firm’s current market cap? What was the firm’s net inco...

Q: The Longmire Company recently reported net profits after taxes of $35

The Longmire Company recently reported net profits after taxes of $35.8 million. It has 3.5 million shares of common stock outstanding and pays preferred dividends of $2 million per year. a. Compute t...

Q: On January 1, 2019, an investor bought 200 shares of

On January 1, 2019, an investor bought 200 shares of Absaroka, Inc., for $60 per share. On January 3, 2020, the investor sold the stock for $75 per share. The stock paid a quarterly dividend of $0.50...

Q: Consider the following information about Truly Good Coffee, Inc.

Consider the following information about Truly Good Coffee, Inc. Total assets $240 million Total debt $115 million Preferred stock $ 25 million Common stockholders’ equity $100 million Net profits aft...

Q: In early 2018, FedEx stock was selling for $245.

In early 2018, FedEx stock was selling for $245. The company’s annual dividend was $2.60. What was the dividend yield?