In some problems, there is % of two different bases, and neither base is given. 130. How many per cent above cost must a man mark his goods, in order to take off 10 per cent and still make a profit of 121%? In some problems, two equations with two unknown quantities are necessary. 131. My agent sold my flour at 4% commission. Increasing the proceeds by $168, I bought wheat, paying 2% commission; wheat declining 3%, my loss, including commissions, was $30. What was the selling price of the flour? 132. What per cent would a dishonest dealer gain by using a false weight of 15 oz. instead of a pound? 133. What per cent does a customer lose, if his grocer uses a false weight of 15 oz. instead of a pound? 134. The lead ore from a certain mine yields 40% of metal, and of the metal, % is silver. How many ounces of silver will be obtained from a ton of ore? 135. A brewery is worth 4% less than a tannery, and the tannery 16% more than a boat; the owner of the boat has traded it for 75% of the brewery, thus losing $103. How much is the tannery worth? 136. 8 lb. of a certain article loses 3 oz. in weight by drying. What per cent of the original weight is water? 137. A man sold an article at 20% gain; had it cost $ 300 more, he would have lost 20%. What was the cost? 138. How must I mark goods so that I may deduct 10% from the marked price and still make 17% ? 139. A merchant marked damaged goods at a certain per cent below cost, but sold them for cost at an advance of 111% on the marked price. What was the marked price? 140. An agent sold my corn, and, after reserving his commission, invested all the proceeds in corn at the same price; his commission, buying and selling, was 3% each, and his whole charge $12. For how much was the corn sold? 141. A dealer sold wheat, losing 4%; keeping $18 of the proceeds, he gave the remainder to an agent to buy corn, 8% commission; his loss together with the commission was $32. How much did the agent pay for the corn? form a stock company. Officers are elected, and a charter (authority to do business as an individual) is obtained from the state. The engraved part of a certificate states the number of parts (shares) into which the property (stock) is divided, the face value (par value) of each part, etc. The written part states the number of shares bought, the name of the purchaser, etc. From a study of the above certificate, the pupil should answer the following questions: Where is the Altar mine situated? Who was the president of the Altar Mining Co. ? the secretary? Into how many shares is the property divided? What is the par value of 1 share? What is the capital stock? Who is the owner of this certificate? How can this certificate be transferred? Usually, shares do not sell for their par value, but for less (at a discount), or for more (at a premium), according to the prospects of the company. If the business is success-. ful, the profits (dividends) are divided according to the number of shares. Brokers buy and sell stock for their employers, charging something (brokerage) both for buying and selling. John Fluker bought the stock when it was first issued, at $2 a share, or at 2% of the par value, or at 98% discount. The profits of the company at the end of the first year were $660,000, and a dividend of 6% was declared. After the dividend, James Lyman bought the 50 shares of John Fluker, through a broker, at $110 a share, paying 1% brokerage. 1. What is the number of this certificate of stock? 2. To whom was the certificate issued? For how many shares? 3. What was the par value of each share? How do you know? 4. What was the market value of each share at the time of issue? How do you know? 5. If the earnings were $660,000, what dividend might have been paid on each share? 6. How many dollars were paid as dividend on each share? 7. What dividend, in all, did John Fluker receive? 8. What was the par value of each share after the dividend? Does the par value ever change? 9. What was the market value of each share after the dividend? Does the market value change? 10. What was John Fluker's entire gain from the stock? 11. What % brokerage did James Lyman pay? What part of a dollar on each share, if the brokerage is some % of the par value? 12. How much brokerage in all did James Lyman pay? What was the entire cost of the stock to James Lyman? PROBLEMS The par value of one share is $100, unless otherwise stated. This understanding saves confusion, and makes it unnecessary to call attention to the par value. The cost, the selling price, the dividend, the brokerage, each is some % of the par value. These terms must be some. per cent either of the market value or of the par value. The par value never changes, the market value is constantly changing; hence the former is selected. All examples in stocks may be analyzed by using $1, 1%, or 1 share as the unit. The last is the simplest, because it eliminates % as much as possible. The student should be able to declare in dollars the cost of one share, the selling price of one share, the dividend on one share, and the brokerage of one share, however the same is stated. 13. Cost. What is the cost of 1 share of 6% stock at 60? Ans. $60. The cost is 60% of $100, or $60. 14. Selling price. What is the selling price of 1 share of 8% stock at 70? Ans. $70. The selling price is 70% of $100, or $70. 15. Dividend. What is the dividend on 1 share of 6% stock? Ans. $6. The dividend is 6% of $100, or $6. 16. Brokerage. What is the brokerage on 1 share of 6% stock at 1%? Ans. $. The brokerage is % of $ 100, or $ }. NOTE. On the New York Stock Exchange, brokerage higher than % is not allowed. How many shares in: 17. $600 6% stock? 18. $800 3% stock? 19. $1200 2% stock? 20. $1500 8% stock? Ex. 17. 6 shares. The par value of one share is $100; $600 is the par value of as many shares as $100 is contained times in $ 600, or 6 shares. |