Activity 1:Direction: Consider the following stocks and solve for the missing element in each row:StockCurrent year'sdividend (Php)Required rate ofValue of a share ofExpected growth individendStock (Php)return205%7%3%5%5203510%735Activity 2:Direction: Find the nond discount and purchase price of the following:Face ValueBond rateTermYield Rate1. Php 34, 0002. Php 9, 0007 %, m= 29%, m = 44 years2 years10%, m 29.5%, m = 4Assessment:Direction: Answer the following problems. Show your solutions and answers on the sheet provided.1. The dividend on a common stock of a certain company will be Php 60 on the first year, Php 85 on the secondyear, and Php 120 on the third year. You can sell the stock after you received the dividend of Php 200 at the endof three years. If you require a 9% retum on your investment, how much will you be willing to pay for a share ofthis stock today?2. What is the purchase price for a Php 55, 000 bond with a periodic rate of 8% converted quarterly for 15 years toyield the purchaser 12%, compounded quarterly?ABC

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Activity 1: Direction: Consider the following stocks and solve for the missing element in each row: Stock Current year's dividend (Php) Expected growth in dividend 5% Required rate of return Value of a share of Stock (Php) 20 7% 3% 5% 520 35 10% 735 ABC

Activity 1: Direction: Consider the following stocks and solve for the missing element in each row: Stock Current year's dividend (Php) Expected growth in dividend 5% Required rate of return Value of a share of Stock (Php) 20 7% 3% 5% 520 35 10% 735 ABC

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 22P

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