WRITTEN WORK 9
1.A financial institution declared a dividend of P75,000,000 for its common stock. Suppose there
are 900,000 shares of common stock, how much is the dividend per share?
= ๐๐๐ก๐๐ ๐๐๐ฃ๐๐๐๐๐
๐๐๐ก๐๐ ๐ โ๐๐ ๐๐
= ๐75,000,000
900,000
= ๐83.33
2.The ABC corporation gave out P38 dividend per share for its common stock. The market
value of the stock is P108. Determine the stock yield ratio.
= ๐๐๐ฃ๐๐๐๐๐ ๐๐๐ ๐ โ๐๐๐
๐๐๐๐๐๐ก ๐๐๐๐ข๐
= 38
108
= 0.3519 ๐๐ 35.19%
3.A bank declared a dividend of P27 per share for the common stock. If the common stock
closes at P93, how large is the stock yield ratio on this investment?
= ๐๐๐ฃ๐๐๐๐๐ ๐๐๐ ๐ โ๐๐๐
๐๐๐๐๐๐ก ๐๐๐๐ข๐
= 27
93
= 0.2903 ๐๐ 29.03%
4.Find the amount of the semi-annual coupon for a P200,000 bond which pays 5% convertible
semi-annually for its coupons.
= Annual coupon amount: 200,000(0.05)=10,000
= Semi โ annual coupon amount: 10,000 (1
2) = 5,000
5.Determine the amount of semi-annual coupon paid for a 3% bond with a face value of
P100,000 which matures after 8 years. How many coupons are paid?
= Annual coupon amount: 100,000(0.03)= 3,000
= Semi โ annual coupon amount: 3,000 (1
2) = 1,500
= 8 ร 2 = 16
=Each semi annual coupon is 1500 paid 16 times every 6 months