Interest calculated solely on the principal amount borrowed or invested is known as compound interest.
Indicate whether the statement is true or false
Q. 2Janus Associates, Inc has 325,000 shares of 100 par value, 6 cumulative preferred stock and 3,500,000 shares of common stock. Although no dividend was declared last year, a 5,750,000 dividend has been declared this year. a. What are the dividends due the preferred shareholders? b. What is the dividend per share of common stock?
Q. 3The price or rental fee charged by a lender to a borrower for the use of money is known as principal.
Indicate whether the statement is true or false
Q. 4The Board of Directors of The Neptune Corporation has declared a dividend of 2,600,000. The company has 600,000 shares of preferred stock that pay 2.50 per share and 1,500,000 shares of common stock. a. What are the dividends due the preferred shareholders? b. What is the dividend per share of common stock?
Q. 5Olga Gioulis purchased 7,000 in U.S. Treasury bills with a discount rate of 5.4 for a period of 4 weeks. How much interest did Olga earn on the T-bill investment? How much was the purchase price of Olga's T-bills? What was the effective interest rate of Olga's T-bill investment? (Round to the nearest hundredth of a percent)
Q. 6A mutual fund has an offer price of 7.42 per share and a net asset value of 7.02. What is the sales charge percent? (Round to the nearest tenth)
A) 2.8
B) 4.1
C) 92.8
D) 5.7
Q. 7Lars was charged 10.5 interest and paid 475 interest on a simple interest loan for 30 days from his local bank. How much did he borrow? Use exact interest. (Round to the nearest cent)
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