Given the two statements below, determine their truth values.I. A property holdings declared a 9 3/4% dividend on a stock with a par value of P500.00. If Ms. Kay owns 2,500 shares ofstock and she received a dividend of P853,120.00.II. P10,000.00 is the amount of the semi-annual coupon for a bond with a face value of P250,000.00 that pays 8%, payablesemi-annually for its coupons.Select one:a. statement I is TRUE and statement II is FALSEb. statement I is FALSE and statement Il is TRUEc. both statements are TRUEO d. both statements are FALSE

Lets start with basics. Dividend is a share of net income distribute to the share holders. Dividends…

Answered: Given the two statements below,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On March 1, Wayne, Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. the purchase price was 87.875 and the commission was $7 per bond. I bonds from this particular company pay interest on February 1 and August 1. A-what is the current yield as a percent of the bond as the purchase date round your answer to one decimal place? (I got 11.07 it was correct) B-what is the total purchase price in dollars of the bonds round your answer to the nearest cent? ( I got $893.85 it was wrong ) C-if Wayne sold the bonds on November 1 for 92.875 what are the proceeds in dollars from the sale round your answer to the nearest cent?( I got 110.1875 it was wrong )
You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $38; (ii) $40; (iii) $44? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.) Stock Price Rate of Return 38 40 % 44 %
You buy 100 shares of stock at a price of $51.37, using 30% initial margin. Some time later, the stock is trading at $49.07, and you sell it and repay the loan. What is your return on this position? Assume no dividends were paid and no interest was accrued on the broker's loan. Enter answer in percents, to two decimal places.
5. You bought a convertible bond issued by Spark Corp which has a conversion ratio of 25 common shares for each $1,000 bond. a. At what stock price per share would you make a profit (“in the money") if you bought the bond at par? b. What would you expect the bond to sell for in the market if the stock trades at $48 per share?
XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Year 2018 2019 Price $ 140 159 132 137 2020 2021 Year-End $ 4 4 4 4 An investor buys five shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all seven remaining shares at the beginning of 2021. Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic time-weighted average returns Geometric time-weighted average returns % % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Date Cash Flow 01/01/2018 01/01/2019 01/01/2020 01/01/2021
Please help. Assume that Almond Milk Company has a $1,000 face value bond with a stated coupon rate of 7.31 percent that is convertible into its common stock at $35.75. The bond is selling at $1,098.14 in the market. The common stock is selling for $33.01 and pays a dividend of 1.34 per share. Calculate the payback premium period. My teacher got 7.29 as the right answer, but I don't know how she got there
You own a perpetual preferred stock issued by Mass General Insurance Company. If the Mass General preferred pays a dividend of $1.02/year, and today’s market rate for this preferred is 4.1%/year, what is its estimated current market price?
ou buy a share of The Ludwig Corporation stock for $21.20. You expect it to pay dividends of $1.10, $1.1693, and $1.2430 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $25.46 at the end of 3 years. Calculate the growth rate in dividends. Round your answer to two decimal places. % Calculate the expected dividend yield. Round your answer to two decimal places. % Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places. %
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(Preferred stock valuation) Pioneer's preferred stock is selling for $30 in the market and pays a $3.30 annual dividend. Chapter a. If the market's required yield is 9 percent, what is the value of the stock for that investor? b. Should the investor acquire the stock? Chapter a. The value of the stock for that investor is $ per share. (Round to the nearest cent.) b. Should the investor acquire the stock? (Select from the drop-down menus.) Chapter The investor acquire the stock because it is currently V in the market. Chapter 1 should not should I Chapter D Chapter I Chapter Сoprigl Terms of Enter your answer in the answer box. Save for Later ..pptx APR
Assume that Almond Milk Company has a $1,000 face value bond with a stated coupon rate of 8.18 percent that is convertible into its common stock at $35.77. The bond is selling at $1,096.27 in the market. The common stock is selling for $33.84 and pays a dividend of 0.62 per share. Calculate the payback premium period.
What is the total percentage return for an investor who purchased a stock for $8.01, received $2.02in dividend payments, and sold the stock for $9.14? Please write your answers as a percentage (e.g. .1234 should be written as 12.34)

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