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 "The value of JFC undervalued" b. Determine the amount of semi -annual coupon paid for 3% bond with a face value of Php 80,000 which matures after 15 years .

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 "The value of JFC undervalued" b. Determine the amount of semi -annual coupon paid for 3% bond with a face value of Php 80,000 which matures after 15 years .

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 23P

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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%
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?
You are told by your investment advisor that Ladumo Co. is expected to earn R5 per share next year, R6 per share the following year and that thereafter earnings are expected to grow by 8% per year. The dividend payout ratio is 60% and the required rate of return on Ladumo shares is 15%. If the current share price is R40, would you expect your advisor to make a buy, hold or sell recommendation? If transaction costs are R2.50 per share, would you follow his advice?
You are told by your investment advisor that Laduma Co. is expected to earn R5 per share next year, R6 per share the following year and that thereafter earnings are expected to grow by 8 percent per year. The dividend payout ratio is 60 percent and the required rate of return on Laduma shares is 15 percent. If the current share price is R40, would you expect your adviser to make a buy, hold or sell recommendation? If transaction costs are R2,50 per share, would you follow his advice? required: D(1) = D (3) = P(T) = P(0) = Buy/sell: Net Procceed: Buy/sell:
You are told by your investment advisor that Laduma Co. is expected to earn R5 per share next year, R6 per share the following year and that thereafter earnings are expected to grow by 8 percent per year. The dividend payout ratio is 60 percent and the required rate of return on Laduma shares is 15 percent. If the current share price is R40, would you expect your adviser to make a buy, hold or sell recommendation? If transaction costs are R2,50 per share, would you follow his advice? 16 D(1) = D (3) = P(T) = P(0) = Buy/sell: Net Procceed: Buy/sell: