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?
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?
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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Transcribed Image Text: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?
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