1. Ken is planning to sell his shares in a company. The dividene P85.00 per share, and the stock price per share is P1050.00, What is the current yield of stock? A bank declared a dividend of P27 per share for the common stock. If the stock closes at P93, how large is the stock yield ratio on this investment? Find the amount of the semi-annual coupon for a P200,000 bond which pays 5% convertible semi-annually for its coupons. Consider the following listing on stocks and answer the questions that follow:

1. Ken is planning to sell his shares in a company. The dividene P85.00 per share, and the stock price per share is P1050.00, What is the current yield of stock? A bank declared a dividend of P27 per share for the common stock. If the stock closes at P93, how large is the stock yield ratio on this investment? Find the amount of the semi-annual coupon for a P200,000 bond which pays 5% convertible semi-annually for its coupons. Consider the following listing on stocks and answer the questions that follow:

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Answer the following. Thank you!
You are considering purchasing a share of preferred stock with the following characteristics: par value = $100 dividend rate = 12% per year payment schedule = quarterly maturity date = required rate of return = 6% per year current market price = $135 per share Based on this information, answer the following: A. What is the dollar amount of the quarterly dividend on this stock? B. Using the Discounted Cash Flow Method, what is the dollar value of this stock? C. Using the Discounted Cash Flow Method, what is the annual expected return for this stock? D. Based on your answer to part B, should you invest in the stock? Why or why not? E.…
Your first task in your new job at an investment bank is to price a new stock issue. You expect the stock will pay a dividend of $2 per share starting 1 year after issue and that dividends will grow at 3.0% per year thereafter. The return on similar stocks is 5.5%. a. What price would you assign to the stock?
Imagine TOP HAT Prefabs issued common shares at a market price of GBP 88 and paid dividends of GBP 6 in 2020. If dividends in 2021 are expected to grow by 5%, the market by 8%, and flotation costs are 20% of market price, what would the company’s cost of equity be? Current market price is GBP 99 and the gilt bond (UK government) gives a 1% rate. If TOPHAT Prefabs was planning to provide a constant growth rate of dividends, what would this growth rate be considering that the UK Gilt rate is 1,5%, the expected rate of return of the market is 3% and the CAPM is 12%? The company needs to purchase raw materials and decides to contract 2 loans for a period of 5 years, as follows: a GBP 80,000 with a 3% semi-annual interest rate and a GBP 150,000 with a 2% quarterly interest rate. What is the effective interest rate for TOPHAT Prefabs? The company decides to renew its manufacturing equipment and sell 2 assembling machines at a price of GBP 15,000 and GBP 25,000 respectively. The…
Assume Evco, Inc. has a current stock price of $48.64 and will pay a $2.25 dividend in one year; its equity cost of capital is 10%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current price? We can expect Evco stock to sell for $. (Round to the nearest cent.)
Am. 114.
You are interested in buying the preferred stock of a bank that pays a dividend of RM1.80 every quarter. If you discount such cash flows at 8 percent, what is the price of this stock?
A stock does not currently pay a dividend, but you expect to sell the stock for $41 in 3 years. The required return is 6%. What is the value of the stock?
A preferred stock from Duquesne Light Company (DQU-PRA) pays $2.10 in annual dividends. If the required rate of return on the preferred stock is 5.4 percent, what is the fair present value of the stock? Please show the solution/ formula used for me so i'll be able to understand it clearly. Thank you
Solve the problem with complete solution. 4. A stock pays an annual dividend of 80 per share. If the stock is trading at 1,500, what is the dividend yield?
A stock pays a dividend of $0.60 the first year, $0.80 the second year, and $0.90 the third year. The dividend is then expected to grow at a constant rate of 7 %, forever. The discount rate is 16%. Currently, the stock selling for $10.00. Should the investors buy this stock?
1. At the beginning of last year you invested 40000 lei in 800 shares of a corporation. At the end of the year the HPR was 10%. You sold the 400 shares and used the amount to buy 1000 shares of stock B. if the expected price is 63.25 lei for stock A and 30.8 lei for stock B? a. What is the expected value of your portfolio at the end of 2022? b. What is the expected return for your portfolio in 2022? c. What is the HPR associated to this investment?

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