<p> Personal Finance Mr. Carbone</p><p>The Stock Market By The Numbers</p><p>Name: ______</p><p>1. If there are 5,000,000 shares of PineApple Computer outstanding and its current </p><p> market price in $40 per share, what is its market capitalization? $200,000,000. If </p><p> you own 100 shares of PineApple, what is the total value of your shares? $4,000.</p><p>2. Three years ago you bought 100 shares of Dull Computer for $50 a share. You </p><p> are now going to sell your shares at the current price of $100 a share. What </p><p> would be the capital gain on your investment? $5,000. </p><p>3. Macrosoft Corporation had net earnings of $1,500,000 last year. The company </p><p> has 300,000 shares outstanding. The current price of the stock is $50 per share.</p><p>What is Macrosoft’s:</p><p> a. Earnings Per Share? $5.00 per share</p><p> b. Price-Earnings Ratio? 10 times (based on $50/$5)</p><p>4. Assume you want to buy 300 shares of InDel Corporation which now selling for </p><p>$70 per share. However, you believe it is too expensive at this price. What </p><p> might you do? Place a limit buy order at $65, place a limit buy at $75, place a </p><p> stop order at $65, or a stop order at $75? Place a limit buy order at $65. </p><p>5. If you own 200 shares of Able Computer that you purchased at $70 per share. </p><p>Assume the stock is trading at $61 per share. If you wanted to place a stop order</p><p> to limit your losses, at which of the following prices might you place your stop </p><p> order: $75, $65, or $55? $55.</p>