You bought 50 shares of Jollibee Food Corp. at Php 25 per share . The amount of dividend paid during the first period is Php 1.10 per share . Since JFC performs well in the PSE , you expected that their dividend payments will grow rate of 3% . Using the dividend valuation principle with the required rate of 5% , Find the value one share of JFC "The value of JFC undervalued" b. Determine the amount of semi -annual coupon paid for 3% bond with a face value of Php 80,000 which matures after 15 years .
Answer the following situation correctly and show your Solution. Show the formulas used too.
a. You bought 50 shares of Jollibee Food Corp. at Php 25 per share . The amount of dividend paid during the first period is Php 1.10 per share . Since JFC performs well in the PSE , you expected that their dividend payments will grow rate of 3% . Using the dividend valuation principle with the required rate of 5% , Find the value one share of JFC "The value of JFC undervalued"
b. Determine the amount of semi -annual coupon paid for 3% bond with a face value of Php 80,000 which matures after 15 years .
Answers (I already provided the answers I just need the Solution):
a. Jollibee is priced Php 25 per share in the market, then it is undervalued.
b. Php 1,200
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
