B. Investor A spent P 250,000.00 for 250 shares on July 2015. He received a pershare dividend amounting to P 2.16 during the year. If on July 2016, the price pershare is 3.25% more, what is the monetary value of A's investment? Compute forthe HPY also.Based on ITEM NO. 1, determine the Percentage Return by doing/computing thefollowing:Ending Stock PriceJuly 2015 ValueJuly 2016 ValueDiv. IncomeCap. Gain/Lossa. Div. Yield:b. Cap. Gains/Loss:c. Total Percentage Returns: A. If a security offers a dividend amounting to P 5.23/ share and an investorpurchased 200 shares at P 77.50/share, what is his Total Investment Return atthe end of the year if the share price increased by 8%?Based on the given above, compute for the Dividend Yield Rate, Capital GainsRate, 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%

We need to compute dividend yield, capital gains and return on the investment.

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:

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section7.4: Valuing Common Stocks

Problem 3ST

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