6. Written.

1. How many shares of stock are there in a company with P750,000 capital?

2. A company with P1,000,000 capital declares a 51% dividend. How much does the holder of 120 shares receive?

3. A railway company with P 800,000 capital divides P32,000 in dividends. What does the holder of 45 shares receive?

4. How much does the holder of 25 shares of stock in a certain steamship line receive when a dividend of 31% is declared? 5. A certain electric light and power company declares a 11% dividend quarterly. What is the annual income of a man who owns 40 shares?

6. What is the rate of semi-annual dividends when a stockholder receives P70 every six months on his 30 shares of stock?

7. How many shares of stock must a man own to receive P500 each year when 14% quarterly dividends are paid by the company?

8. What is the market value of 50 shares of mining stock at 8% premium?

9. What is the value of 35 shares of street railway stock at 10% discount?

10. What is the value of 18 shares of stock at 7 % above par? 11. What is the value of 75 shares of stock at 121 % discount? 12. If I buy stock at 2% discount and sell it at 5% premium, what is my gain per cent? Analyze.

13. If I buy stock at 10% premium and sell it at 3% premium, what do I lose on 80 shares ?

14. How many shares of railroad stock at 6% discount can be purchased for P5264? Analyze.

15. Find the annual income from P7560 invested in stock at

105, paying 8%.

P7560

P105 (cost of one share) = 72, number of shares. 72 x P100 = P7200, par value. 8% of P7200 = P 576, income.

16. What do I receive from 20 shares of stock sold at 108, brokerage %?

17. How much is gained on 50 shares of bank stock purchased at 95 and sold at 102?

18. Mr. Soler invested P3760 in stock at 6% discount. How many shares did he purchase?

19. I purchased 40 shares at 98 and sold them at 104, paying % brokerage for each transaction. Find the gain.

20. How much, including brokerage at 1%, must be paid for 60 shares of Manila street railway stock at 101?

One share costs P101 + P.25, or P101.25.

21. What was paid for 120 shares of railway stock at 121% below par, brokerage %?

22. What per cent do I receive on my investment, if I buy stock at 80 which pays 6% ?

23. A bank whose capital is P200,000 pays a 4% dividend. How much is paid to Mr. Capiz, who owns 20 shares of stock?

24. What per cent on the investment is gained by buying stock at 15% discount, if the stock pays an annual dividend of 5% ? 25. Mr. Rizal bought 140 shares of stock in an electric plant at 31% discount and sold them at par value. What did he gain? 26. A semi-annual dividend of 41% was declared on some railway stock of which I owned 85 shares. What was my

annual profit?

27. If 6% stock is bought at 25% discount, what is the rate of income on the investment?

28. A man receives a semi-annual dividend of 3% on bank stock which he bought at 120. What rate of interest does he receive on his money?

29. A man has 40 shares of railroad stock on which he receives quarterly dividends of 13%. If he bought the stock at 90, what rate of interest does he receive on his investment?

30. An annual dividend of 4% on my bank stock yields me an income of P3200. What is my stock worth at P130 a share? 31. A man gained P160 by selling 40 shares of stock at 127§. At what price did he buy it?

32. A man bought 80 shares of mining stock at 87 and 50 shares of railroad stock at 112, brokerage %. Find the cost. 33. What must I pay for stock that yields a dividend of 6% in order to realize 8% on the investment?

34. How many shares of Manila street railway stock at 104 will purchase 240 shares of bank stock at 91?

35. A farmer sold of his farm of 520 hektars at P77 per hektar and invested the proceeds in bank stock at 91. How many shares did he purchase?

36. A broker sold for me 160 shares of stock at 1061. If he retained% brokerage, how much did he pay over to me?

37. What per cent is received on an investment in stock at 871 that pays a dividend of 71% ?

38. How many shares at 10% premium can I buy for P9481.50 if the brokerage is 1%? What income have I from these shares if they pay an annual dividend of 5% ?

39. Which is the better investment, 6% stock at 125 or 5% stock at par?

40. A man bought 220 shares of stock at 112. He paid for it, including brokerage, P24,695. What rate of brokerage did he pay?

7. Written.

TRUE DISCOUNT

The present worth of a debt payable at a future time without interest is a sum which will amount to the debt if put at interest until that time.

The true discount is the difference between the face of the debt and its present worth.

Find the present worth and true discount of a debt of P 604.80, due in 1 yr. 4 mo. without interest, when money is worth 6%. P 1.08 is the amount of P1 for 1 yr. 4 mo. at 6 %, that is, P1 is the present worth of P1.08.

To find the present worth, divide the debt by the amount of P1 for the given time, at the given rate.

To find the true discount, subtract the present worth from the debt.

1. Find the present worth of P 726.29 due in 3 yr. at 6%. 2. What is the present worth of P 1112.50 due in 2 yr. 3 mo. if money is worth 5% ?

3. Find the present worth and true discount of a debt of P371 due in 8 mo., without interest, when money is worth 9%.

4. Find the true discount on P 302.40 due in one year at 5%.

5. Which would be more profitable, and how much, to pay P5000 cash for a farm, or P5341 in 1 yr. 6 mo., money being worth 6% ?

6. If money is worth 8%, what cash offer will be equivalent to an offer of P 312 for a bill of goods on 6 mo. credit?

7. Which is the greater and how much, the interest or the true discount on P 900 due in 1 yr. 6 mo., if money is worth 10% ?

8. Which is better, to pay P11.20 per 100 lb. for sugar, or P11.44 on 8 months' time, money being worth 6% ?

9. Find the difference between the interest and the true discount on P 8344, due in 3 yr., if money is worth 4%.

10. Find the bank discount on a note for P 730 due in 60 da., without interest, discounted at 8%.

Bank discount is exact interest, counting 365 da. as a year, upon the amount of a note at its maturity.

11. Find the difference between the bank discount and the true discount on a note for P1095 due in 90 days, without interest, the discount in each case being 8%.

12. What is the true discount on P1000 due in 2 yr. 6 mo., without interest, when money is worth 8% ?

13. Find the present worth of a debt of P1800 due in 2 yr. 6 mo., without interest, when money is worth 5 %.

8. Written.

Find the bank discount and proceeds of the following notes:

Find the present worth and true discount of the following, with

out interest:

60 da.

June 5