Direction: Solve for the followingproblems involving stocks and bonds.PROBLEMSOLUTION1. SVT, a land developer, declared a dividendof P17,000,000 for its common stock.Suppose there are 500,000 shares of commonstock, how much is the dividend per share?2. Find the amount of the semi-annualcoupon for a P300,000 bond which pays 12%convertible semi-annually.Direction: Solve for the followingproblems involving loans.PROBLEMSOLUTION1. A loan of P50,000 is to be repaid in fullafter 2 years. If the interest rate is 7 % perannum, how much should be paid after 2years?2. For a purchase of a house and lot worthP2,500,000, the bank roquires 30% downpayment, find the mortgaged amount.

As posted multiple independent questions we are answering only first question kindly repost the…

Answered: 1. SVT, a land developer, declared a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The problems below illustrate stocks or bonds. Using the important terms related to stocks and bonds, answer the following problems completely. a. A land developer declared a dividend of P5,000,000 for its common stock. Suppose there are 100,000 shares, how much is the dividend per share? b. Find the amount of semi-annual coupon for a P300,000 bonds which pays 6.5% convertible semi-annually for its coupons. c. A certain company gave out P50 dividend per share for its common stock. The market value of the stock is Pi25. Determine the stock yield ratio. d. What is the current yield of a bond whose face value is P15,000 and pays an annual interest of 6.5% if purchased at face value at P13,500? 1. How can we determine if the problem or scenario involves or illustrates stocks or bonds? 2. What possible problems or questions may we encounter when we are dealing with stocks? How about when we are dealing with bonds? 3. What factors have a great effect on the return of your investments both on…
The problems below illustrate stocks or bonds. Using the important terms related to stocks and bonds, answer the following problems completely. a. A land developer declared a dividend of P5,000,000 for its common stock. Suppose there are 100,000 shares, how much is the dividend per share? b. Find the amount of semi-annual coupon for a P300,000 bonds which pays 6.5% convertible semi-annually for its coupons. c. A certain company gave out P50 dividend per share for its common stock. The market value of the stock is P125. Determine the stock yield ratio. d. What is the current yield of a bond whose face value is P15,000 and pays an annual interest of 6.5% if purchased at face value at P13,500?
A. If a security offers a dividend amounting to P 5.23/ share and an investor purchased 200 shares at P 77.50/share, what is his Total Investment Return at the end of the year if the share price increased by 8%? Based on the given above, compute for the Dividend Yield Rate, Capital Gains Rate, and Total Investment Return Rate. Dividend Yield Rate: Dt+1/Pt = (P5.23+1/77.50) = 0.06748 or 6.748% Capital Gains Rate: (Pt+1-Pt) /Pt = 77.50 x 8%= 6.2 = 77.50/6.2= 83.7 = 83.7-77.50 = 6.2/77.50 = 0.08 or 8% Total Investment Return Rate: (Dt+1+Pt+1-Pt) /Pt = (5.23+1+83.7-77.50)/ 77.50 = 0.147 or 14.7%
A. Suppose that Taco John’s equity is currently selling for $55 per share, with 4million shares outstanding. If the firm also has 17 thousand bonds outstanding,which are selling at 94 percent of par, what are the firm’s current capital structure weights? Use the capital structure weights equation:B. Suppose that Taco John’s is considering an active change to their capital structure so as to have a D/E of 0.4, which type of security (stocks or bonds) would they need to sell to accomplish this, and how much would they have to sell?
Consider this example: Shares of Ex Why Zee, Inc. (ticker symbol: XYZ) are currently trading at $6 per share. XYZ plans to issue $6M in short term debt and use the money they borrow to repurchase $6M worth of their own stock. What effect will the debt issuance and share repurchase have on the balance sheet? There isn't enough information to answer this question Assets will increase by $6M Liabilities will decrease by $6M Number of Shares Outstanding will increase by 1 million Equity will decrease by $6M
Suppose that investors cumulatively short-sell 6 million shares of a stock and the share price appreciates from $200 to $1100. In the meantime, the stock pays a dividend of $20 per share. What is the total amount of loss that the short sellers suffer from their position? You can ignore shorting fees and assume all interest rates are zero). A. $5.5 billion B. $7.3 billion C. $6.1 billion O D. $4.3 billion
solve the following
please see attatched file
6. Company cost of capital (S9.2) Nero Violins has the following capital structure: Total Market Value ($ millions) $100 Security Debt Preferred stock Common stock Beta 0 0.20 1.20 40 299 a. What is the firm's asset beta? (Hint: What is the beta of a portfolio of all the firm's securities?) b. Assume that the CAPM is correct. What discount rate should Nero set for investments that expand the scale of its operations without changing its asset beta? Assume a risk-free interest rate of 5% and a market risk premium of 6%. Ignore taxes.
Suppose the firm has a value of $169,411.77 when it is all equity financed. Now assume the firm issues $ 52,000 of debt paying interest of 6% per year and uses the proceeds to retire equity. The debt is expected to be permanent. What will be the value of the firm? Enter your answer rounded to two decimal places. Number What will be the value of the equity after the debt issue? Enter your answer rounded to two decimal places. Number
D1.
Problem 1 Assume that ABC Corporation earns a net income of 10 million for the current period. The corporation also needs Br 8 million for new investments for the next period. Suppose the target capital structure of debt to equity ratio is one to three ratios. Based on this, determine the amount of dividend to be paid based on the residual dividend policy? Beob om

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

1. SVT, a land developer, declared a dividend of P17,000,000 for its common stock. Suppose there are 500,000 shares of common stock, how much is the dividend per share? 2. Find the amount of the semi-annual coupon for a P300,000 bond which pays 12% convertible semi-annually.