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Earnings Per Share Annual Dividend Per Share Current Price Per Share Current Yield Price-Earnings Ratio

This document provides information about stocks and bonds to solve various calculations. For stocks, it lists earnings per share, dividend per share, current price, yield, and price-earnings ratio for 5 companies and calculates values using the given data. For bonds, it provides redemption value, conversion period, bond rate, and coupon payments for 5 bonds and calculates periodic interest rates and coupon values.

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Glecy Adriano
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2K views4 pages

Earnings Per Share Annual Dividend Per Share Current Price Per Share Current Yield Price-Earnings Ratio

This document provides information about stocks and bonds to solve various calculations. For stocks, it lists earnings per share, dividend per share, current price, yield, and price-earnings ratio for 5 companies and calculates values using the given data. For bonds, it provides redemption value, conversion period, bond rate, and coupon payments for 5 bonds and calculates periodic interest rates and coupon values.

Uploaded by

Glecy Adriano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

I.

Problem Solving
A. Complete the information below using Stocks.
Annual
Earnings Current Price Price-earnings
Dividend per Current Yield
per share per share Ratio
share
P250 P150 P3,750 4% 15:1

P512 P100 P1,250 8%

P100 P400 P4,000 10% 40:1

P50 P140 P1,750 8% 35:1

P383 P900 P7,500 12% .

Current price per share P 3,750


1. Earnings per share= ¿ =250
Price−earning ratio 15
Annual Dividend per share P 150
2. Current Yield= = =0.04∨4 %
Current price per share P 3,750
3. Annual Dividend per share=Current price per share ×Current Yield
Annual Dividend per share=P 1,250 ×0.08
Annual Dividend per share=P 100

Current price per share P 1,250


4. Price−earning ratio= = =¿
Earnings per share P512
5. Annual Dividend per share=Current price per share ×Current Yield
Annual Dividend per share=P 4,000 × 0.10

Annual Dividend per share=P 400


6. Current price per share=Earnings per share × Price−earning ratio
Current price per share=P100 × 40=P 4,000

Current price per share P1,750


7. Earnings per share= = =P 50
Price−earning ratio 35

Annual Dividend per share P 140


8. Current Yield= = =0.08∨8 %
Current price per share P 1,750
Annual Dividend per share P 900
9. Current price per share= = =P 7,500
Current Yield 0.12

This study source was downloaded by 100000789948151 from CourseHero.com on 01-11-2022 03:59:17 GMT -06:00

https://www.coursehero.com/file/90448826/TP-stocks-bondsdocx/
Current price per share P 7,500
10. rice−earning ratio= = =¿
Earnings per share P 383

B. Complete the information below using Bonds.


Redemption Value Conversion per Coupon payments
Bond Rate (r)
(F) year (m) (k)
P250 Bimonthly 18% P7.50
P680 Quarterly 11% P18.7
P900 Quarterly 12.8% P28.8
P1,300 Bimonthly 12% P26
P700 Annually 15% P105.00

11. SOLUTION
Coupon of payment
Redemption value= ×conversion per year
Bond rate
P 7.50
F= × 6 = P250
0.18
12. SOLUTION
r 0.11
b= = = 0.028
m 4
Coupon Payments ( k ) =face value× Periodic bond interest rate
k =Fb=P 680× 0.0275=P 18.7
13. SOLUTION
r 0.128
b= = = 0.032
m 4
Coupon Payments ( k ) =face value× Periodic bond interest rate
k =Fb=P 900 ×0.032=P 28.8
14. SOLUTION
r 0.12
b= = = 0.02
m 6
Coupon Payments ( k ) =face value× Periodic bond interest rate
k =Fb=P 1,300× 0.02=P 26

This study source was downloaded by 100000789948151 from CourseHero.com on 01-11-2022 03:59:17 GMT -06:00

https://www.coursehero.com/file/90448826/TP-stocks-bondsdocx/
15. SOLUTION
Coupon of payment
Redemption value= ×conversion per year
Bond rate
P 105
F= × 1 = P700
0.15

This study source was downloaded by 100000789948151 from CourseHero.com on 01-11-2022 03:59:17 GMT -06:00

https://www.coursehero.com/file/90448826/TP-stocks-bondsdocx/
This study source was downloaded by 100000789948151 from CourseHero.com on 01-11-2022 03:59:17 GMT -06:00

https://www.coursehero.com/file/90448826/TP-stocks-bondsdocx/
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