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Stock and Bond Financial Calculations

The document provides information to solve problems involving stocks and bonds. It includes tables with missing values for earnings per share, dividend payments, prices, yields, and other financial metrics. The solution fills in the missing values by performing calculations using the rates, prices and other known values provided in the tables. The high-level information and essential details are concisely summarized in the solution.

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Mc Jaryl Hernandez
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76 views2 pages

Stock and Bond Financial Calculations

The document provides information to solve problems involving stocks and bonds. It includes tables with missing values for earnings per share, dividend payments, prices, yields, and other financial metrics. The solution fills in the missing values by performing calculations using the rates, prices and other known values provided in the tables. The high-level information and essential details are concisely summarized in the solution.

Uploaded by

Mc Jaryl Hernandez
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Mc Jaryl Hernandez

BSIT-BI105

I. Problem Solving (15 items x 3 points)

A. Complete the information below using Stocks.

Annual
Earnings per Current Price Price-earnings
Dividend per Current Yield
share per share Ratio
share
1. P250 ₱150 ₱3,750 2. 4% 15:1
₱512 3. P100 ₱1,250 8% 4. 2.44
₱100 5. P400 6. P4,000 10% 40:1
7. P50 ₱140 ₱1,750 8. 8% 35:1
₱383 ₱900 9. P7,500 12% 10. 19.58

B. Complete the information below using Bonds.

Redemption Value Conversion per year Coupon Payments


Bond Rate (𝑟) (𝑘)
(𝐹) (𝑚)
11._ P1,000 Bimonthly 18% ₱7.50
₱680 Quarterly 11% 12._ P18.7
₱900 Quarterly 12.8% 13._ P28.8
₱1,300 Bimonthly 12% 14._ P6.5
15. P700 Annually 15% ₱105.00

Solution:

1. EPS =MPS/PE

= 3750/15

= 250

[Link] yield = DPS/market price per share

= 150/3750

= 4percent

3. Annual dividend per share: Market price X current yield

= 1250 X 8%

=100

4. PE ratio: MPS/EPS

= 1250/512

= 2.44
5. Annual dividend per share: MPS x
Current yield 13.
r = 12.8% or 3.2% Quarterly
= 4000 X10%
F = ₱900
= 400
K = F * r/100
6. Current price per share: PE X EPS
= 900 * 3.2/100
= 40dollars X 100 dollars
= ₱28.8
= 4000 dollars
14.
7. EPS: 1750/35
r = 12% or 0.5% Bimonthly
= 50
F = ₱1,300
8. Current yield: 140/1750
k = F * r/100
= 8%
= 1,300 * 0.5/100
9. Current price per share: 900/12%
= ₱6.5
= 7500
15.
10. PE ratio: 7500/383
r = 15% annually
= 19.58
k = ₱105
11.
F = (k/ r) *100
r = 18% or 0.75% bimonthly
= (105/ 15) *100
k = ₱7.50
= ₱700
F = (k/ r) *100

= (7.50/ 0.75) *100

= ₱1,000

12.

r = 11% or 2.75% Quarterly

F = ₱680

k = F * r/100

= 680 * 2.75/100

= ₱18.7

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