B. Investor A spent P 250,000.00 for 250 shares on July 2015. He received a per share dividend amounting to P 2.16 during the year. If on July 2016, the price per share is 3.25% more, what is the monetary value of A's investment? Compute for the HPY also. Based on ITEM NO. 1, determine the Percentage Return by doing/computing the following:
B. Investor A spent P 250,000.00 for 250 shares on July 2015. He received a per share dividend amounting to P 2.16 during the year. If on July 2016, the price per share is 3.25% more, what is the monetary value of A's investment? Compute for the HPY also. Based on ITEM NO. 1, determine the Percentage Return by doing/computing the following:
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 6P
Related questions
Question
Transcribed Image Text:B. Investor A spent P 250,000.00 for 250 shares on July 2015. He received a per
share dividend amounting to P 2.16 during the year. If on July 2016, the price per
share is 3.25% more, what is the monetary value of A's investment? Compute for
the HPY also.
Based on ITEM NO. 1, determine the Percentage Return by doing/computing the
following:
Ending Stock Price
July 2015 Value
July 2016 Value
Div. Income
Cap. Gain/Loss
a. Div. Yield:
b. Cap. Gains/Loss:
c. Total Percentage Returns:
Transcribed Image Text:A. If a security offers a dividend amounting to P 5.23/ share and an investor
purchased 200 shares at P 77.50/share, what is his Total Investment Return at
the end of the year if the share price increased by 8%?
Based on the given above, compute for the Dividend Yield Rate, Capital Gains
Rate, and Total Investment Return Rate.
Dividend Yield Rate: Dt+1/Pt
= (P5.23+1/77.50)
= 0.06748 or 6.748%
Capital Gains Rate: (Pt+1-Pt) /Pt
= 77.50 x 8%= 6.2
= 77.50/6.2= 83.7
= 83.7-77.50
= 6.2/77.50
= 0.08 or 8%
Total Investment Return Rate: (Dt+1+Pt+1-Pt) /Pt
= (5.23+1+83.7-77.50)/ 77.50
= 0.147 or 14.7%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning