24. If you own 100 shares of $50 each in a corporation paying a dividend of 8 %, how much will you receive?

25. $20,000 of the stock of a certain corporation is 7 % preferred stock. What are the dividends upon the preferred stock?

26. If the total capital of the corporation referred to in problem 25 is $270,000, how much is common stock?

27. In the same corporation, if $16,400 in dividends are distributed to the stockholders of both kinds of stock, how much do the common stockholders get? What per cent of the common stock is this?

28. If I buy 10 $100 shares of stock at 1251 (through a broker), receive a dividend of 12 %, and sell in a year for 131 (through a broker), how much do I make?

29. How much does one lose, besides the interest upon the money that he invests, if he buys 100 $100 shares of stock at 80, receives two 5% dividends, and sells in two years at 65, both transactions through a broker?

30. If you buy 50 $100 shares of New York Central when it is selling at 1081, hold it until you have received three 8% dividends, and then sell it at 116ğ, both transactions through a broker, how much do you make?

NOTE. It will be found interesting and of great value in making the study of stocks concrete, for the class to play "Stock Exchange." A few pupils may act as brokers, and the rest play that they are investors. The investors prepare make-believe certificates of stock, either stock of fictitious companies or stock quoted in the daily papers, which they place on sale through their chosen brokers. The market prices asked may be taken from daily papers, if the stocks are quoted there, or regulated in some other way. Each of the pupils also buys stocks through the broker handling the kind that he wants. Payments may be made by checks on a make-believe school bank or otherwise, the brokers receiving their fees. Play that a day or a week is a year. Pay dividends once a year Details of the game will suggest themselves readily to the teacher.

Why not picture a craponbold? See home 195 Essentials

242

at Aritti:

EIGHTH YEAR

(advanced Book)

63. BONDS

When corporations, or national, state, or city governments, borrow large sums of money, they usually give a series of bonds or promissory notes, for one or more hundred or thou sand dollars each, and to run several years at a fixed rate of interest. Instead of finding some one that will lend the money needed, the bonds are issued and offered for sale.

Registered bonds are recorded by number on the books of the corporation, with the names and addresses of the holders. They can change owners only through the office of the

One of several interest coupons attached to a bond.

Mexican Mutual Planters' Company

OF NEW YORK

Will pay to bearer at the office of the Company ...Fifty.... Dollars on the 15th day of April, 19/1, being...one year's...interest on coupon bond No.../37....

___A. L. Smith,---
Secretary.

or

treasurer. The in-
terest is sent to the
holder when due.
Coupon bonds
bear small, detach-
able coupons
certificates of the
amount of interest
regularly due.
These coupons are
paid by the treas-
urer on presenta-
tion, or they may be
deposited at one's

bank for collection. Bonds are bought and sold like stocks.

Problems

1. If the coupon shown above is one attached to a 5% bond, what is the face value of the bond?

2. When is the next payment of interest due? 3. Where can it be collected, and by whom?

4. If the bonds sell at 108, what would this one cost, including% brokerage?

5. My 4% bonds yield me $180 annually. What is their par value?

6. If a $2000 bond was bought when quoted at 1037 ($103 for $100 of par value), brokerage, what did it cost? What is it worth at maturity? How much less than it cost is this?

7. When bonds are quoted at 973, what will a $1000. bond cost, if bought through a broker? What is it worth when due?

8. A corporation is bonded for $200,000. The bonds bear 41% interest. What yearly interest does the corporation pay? 9. What income will one receive yearly from six $500 5% bonds?

10. A $30 coupon was the interest for one year.

detached from a 6% bond, being What was the face of the bond?

11. How many $1000 4% bonds are necessary to yield an annual income of $1200?

12. When one buys a $1000 5% bond, due in 3 years, at 967, brokerage %, what does he make besides the interest if he holds it until maturity?

13. Give the cost of a $1000 bond in each of the following corporations, allowing for brokerage, the quotations

14. Give the year's income from a $1000 bond in each of the corporations listed in problem 13.

15. I wish to secure an income of $1200. How much shall I spend for 4% bonds bought at par to do this? How much at 102?

16. A father gives his son sufficient 5% bonds to pay his college expenses with their income. His expenses amount to $800 a year. What is the face value of the bonds? What did they cost through a broker at 110?

64. INDIRECT PROBLEMS OF PERCENTAGE

There is a class of problems in percentage, much less common in business than those already given, that will be discussed in this section, viz.: to find all or any required per cent of a given number when some known per cent of it is given.

Problems

1. A dealer lost 20 % when selling an overcoat for $16. 'How much did it cost him?

2. A dealer

gain of 40%.

SUGGESTION.

Since 80% of the cost

=

$16, then 20%

of $16, or $4. Adding, $20.

of the cost =
100% of the cost =

marked a suit to sell for $28. This was a Find the cost of the suit.

140% of the cost is known and 100% of it is wanted.

3. My rent is $720 a year. This is 10% of the value of the property. Find the value of the property.

4. By selling a house for $12,000 I gained 20 % of the cost. Find the gain.

5. After using a canoe one season, I sold it for $28.80, which was 20% less than it cost me. How much did it

cost me?

6. A dealer sold a chair for $32. If his gain was 33% of the cost, how much did it cost him?

7. After allowing a discount of 25 %, a bill of goods cost $1395. Find the list price.

8. A man sold a buggy for $190, which was a loss of 5%. For how much must he have sold it to make 25 % ?

9. $28.35 will settle a bill on which a discount of 10% is given for cash. How much is saved by paying cash?

10. After deducting 4 % for his commission, an agent remitted $3072 from a sale of goods. For how much did he sell the goods?

11. A merchant sold goods for $240, thereby losing 20 %. For how much should he have sold them to gain 20% ?

12. A speculator sold two houses for $10,000 each. On one he made 25 % of the cost, and on the other he lost 163 % of the cost. Compare the gain on one with the loss on the other.

13. After gaining 50 % of his original capital, a man had a capital of $18,000. Find the original capital.

14. A yacht cost a dealer $448. He wishes to know how to mark it so that he may deduct 20% from the marked price and still make 25% of what it cost him. Can you tell him?

15. A merchant sold tea at 42¢ a pound. This was 20 % more than it cost him. How much did he make on 350 lb.?