GE1707
I. Problem Solving (15 items x 3 points)
A. Complete the information below using Stocks.
Annual
Earnings per Current Price Price-earnings
Dividend per Current Yield
share per share Ratio
share
1. ₱ 250 ₱150 ₱3,750 2. 4% 15:1
₱512 3. ₱100 ₱1,250 8% 4. 2:1
₱100 5. ₱400 6. ₱4,000 10% 40:1
7. ₱50 ₱140 ₱1,750 8. 8% 35:1
₱383 ₱900 9. ₱7,500 12% 10._ 20:1
B. Complete the information below using Bonds.
Redemption Value Conversion per year Coupon Payments
Bond Rate (𝑟) (𝑘)
(𝐹) (𝑚)
11._ ₱250 Bimonthly 18% ₱7.50
₱680 Quarterly 11% 12. ₱18.70
₱900 Quarterly 12.8% 13. ₱28.80
₱1,300 Bimonthly 12% 14. ₱ 26.00
15. ₱700_ Annually 15% ₱105.00
SOLUTION:
Current price
1. Earnings per share=
Price Earning Ratio
3,750
Earnings per share =
15
Earnings per share = 250
Annual divident per share
2. Current yield =
Current price per share
150
Current Yield =
3750
Current Yield = 1/25 or 0.04 or 4%
3. Annual Dividend per Share = Current Price x Current Yield
Annual Dividend per Share = 1250 x 0.08
Annual Dividend per Share = 100
Current Price per Share
4. Price Earnings Ratio =
Earnings Per Share
1250
Price Earnings Ratio =
512
Price Earnings Ratio = 2.44 or 2.44:1 or 2:1
5. Annual Dividend per Share = Current Price x Current Yield
Annual Dividend per Share = ₱4000 x 0.10
Annual Dividend per Share = 400
6. Annual Dividend per Share = Current Price x Price Earning
Annual Dividend per Share = 100 x 40
Annual Dividend per Share = 4000
Current Price per share
7. Earnings per share =
Price Earnings Ratio
1750
Earnings per share =
35
Earnings per share = 50
Annual Dividend per Share
8. Current Yield =Annual Dividend per Share
Current Price per Share
140
Current Yield =
1750
Current Yield = 0.08 or 8%
Annual Dividend per Share
9. Current Price per Share =
Current Yield
900
Current Price per share =
0.12
Current Price per share = 7500
Current Price per Share
10. Price Earnings Ratio =
Earnings Per Share
7500
Price Earnings Ratio =
383
Price Earnings Ratio = 19.58 or 19.58:1 or 20:1
05 Task Performance 1 *Property of STI
Page 1 of 1