1. Burgos Co. declared dividends amounting to Php1.50 per share this year out of its Php500,000 net income during the year. The following summarizes the shareholders equity of Burgos Co.: Total authorized shares - 500,000 shares Issued shares - 100,000 shares Treasury shares - 10,000 shares Total shareholders' equity - Php2,500,000 1. Assuming that the price of Burgos Co. is currently trading at Php18.00, what is the expected return on this investment? 2. Assuming that the price of Burgos Co. is currently trading at Php18.00, what is the dividend yield on Burgos Co.'s share? 3. What is the estimated growth rate of Burgos Co.'s dividends?
1. Burgos Co. declared dividends amounting to Php1.50 per share this year out of its Php500,000 net income during the year. The following summarizes the shareholders equity of Burgos Co.: Total authorized shares - 500,000 shares Issued shares - 100,000 shares Treasury shares - 10,000 shares Total shareholders' equity - Php2,500,000 1. Assuming that the price of Burgos Co. is currently trading at Php18.00, what is the expected return on this investment? 2. Assuming that the price of Burgos Co. is currently trading at Php18.00, what is the dividend yield on Burgos Co.'s share? 3. What is the estimated growth rate of Burgos Co.'s dividends?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1. Burgos Co. declared dividends amounting to Php1.50 per share this year out of its Php500,000 net income during the year. The following summarizes the shareholders equity of Burgos Co.:
- Total authorized shares - 500,000 shares
- Issued shares - 100,000 shares
- Treasury shares - 10,000 shares
- Total shareholders' equity - Php2,500,000
1. Assuming that the price of Burgos Co. is currently trading at Php18.00, what is the expected
2. Assuming that the price of Burgos Co. is currently trading at Php18.00, what is the dividend yield on Burgos Co.'s share?
3. What is the estimated growth rate of Burgos Co.'s dividends?
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