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 . Under your assumptions , is JFC undervalued or overvalued in the market ? b. Puregold Price Club , Inc. ( POOLD ) gave out Php 25 dividend per share for its common stock . The market value of the stock is Php 95 . Deterrnine the stock yield ratio . 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. 27.17%
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 . Under your assumptions , is JFC undervalued or overvalued in the market ?
b. Puregold Price Club , Inc. ( POOLD ) gave out Php 25 dividend per share for its common stock . The market value of the stock is Php 95 . Deterrnine the stock yield ratio .
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. 27.17%
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