Burgos Co. declared dividends amounting to Php1.50 per share this year out of its Php500,000 netincome during the year. The following summarizes the shareholders equity of Burgos Co.:• Total authorized shares 500,000 shares• Issued shares 100,000 sharesTreasury shares 10,000 shares• Total shareholders' equity - Php2,500,000Assuming that the price of Burgos Co. is currently trading at Php18.00, what is the expected returnon this investment?

Given, Dividend per share = 1.50 Net Income = 500,000 Shareholders' equity = 2,500,000 Return on…

Answered: Burgos Co. declared dividends amounting…

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

See similar textbooks

Similar questions

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?
At the start of the fiscal year, Comfortable Company has 100,000 shares of its ₱10 par value common stock. The stocks were initially issued at ₱18 per share. On June 16, the company issued additional 20,000 shares at ₱20 per share. Comfortable Company has retained earnings of ₱245,600 at the beginning of the fiscal year. The company reported net income of ₱89,540. On September 30, cash dividend of ₱60,000 were distributed to stockholders. How much would be the stockholders' equity at the end of fiscal year October 31, 2019?
Please answer in good accounting form. Thankyou During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire year. Additional information are as follows: Ordinary share capital, par ₱10 - ₱1,000,000; 7% Preference share capital, ₱100 par, cumulative - ₱500,000. The net income for the year amounts to ₱500,000. What is the basic earnings per share?
During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire year. Additional information are as follows: Ordinary share capital, par ₱10 - ₱1,000,000; 7% Preference share capital, ₱100 par, cumulative - ₱500,000. The net income for the year amounts to ₱500,000. What is the basic earnings per share?
During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire year. Additional information are as follows: Ordinary share capital, par ₱10 - ₱1,000,000; 7% Preference share capital, ₱100 par, cumulative - ₱500,000. The net income for the year amounts to ₱500,000. What is the basic earnings per share? (PRESENT YOUR ANSWER IN TWO (2) DECIMAL PLACES, example: xx.xx)
A listed company has made a profit after tax of RM1,500,000 in the year ended 31 December 2021. It has 10,000,000 ordinary shares in issue. It also has 2,000,000 10% preference shares in issue. Calculate the earnings per share for the year ended 31 December 2021.
1. Theodore Company had 168,000 of ordinary shares issued and outstanding at January 1, 2020. On January 2 of the same year, the company issued 112,000 preference shares. During the year, the company issued declared and paid ₱588,000 cash dividend on the ordinary shares and ₱336,000 on the preference shares. Net income for the year was ₱2,100,000. What should be the basic earnings per share on 2020?
Badway Co. reported profit for the year amounting to ₱4,000,000. Badway Co. has the following equity instruments:  10,000, 10%, cumulative preference shares issued and outstanding with par value of ₱400 per share.  20,000, 5%, non-cumulative preference shares issued and outstanding with par value of ₱80 per share.  11,000 ordinary shares issued and outstanding with par value of ₱20 per share. In addition to the above instruments, Badway Co. also has outstanding convertible bonds with face amount of ₱4,000,000 and carrying amount of ₱ 3,807,853 as of the beginning of the year. The nominal rate of the bonds is 10% while the original effective interest rate is 12%. The bonds are convertible into 50,000 ordinary shares. Badway Co.’s income tax rate is 30%. Badway Co. declared the following dividends during the year: • ₱600,000 to cumulative preference shares; • ₱100,000 to non-cumulative shares; and • ₱110,000 to ordinary shares. Dividends in arrears on cumulative preference share as of…
The condensed balance sheet of C Company as of December 31, 2020 is shown below: On January 1, 2021, V Company issued 10,000 shares of its Php10 par value stock with a market value of Php40 per share for the net assets of C Company. How much is the increase in the stockholders equity of V Company due to the business combination?
Show all workings clearly for upvotes. Theodore Company had 168,000 of ordinary shares issued and outstanding at January 1, 2020. On January 2 of the same year, the company issued 112,000 preference shares. During the year, the company issued declared and paid ₱588,000 cash dividend on the ordinary shares and ₱336,000 on the preference shares. Net income for the year was ₱2,100,000. What should be the basic earnings per share on 2020?
The company issued 2,500, P125 par ordinary shares for an outstanding bank loan of P350,000. On this date, shares are quoted at P150 per share. Compute for the increase in share premium*
GROOT Corporation has 350,000 shares of ₱10 par value ordinary shares outstanding. During the year, GROOT declared a 12% share dividend when the market price of the stock was ₱25 per share. Four months later, GROOT declared a ₱0.50 per share cash dividend. As a result of the dividends declared during the year, how much was the decrease in retained earnings? a. ₱1,050,000 b. ₱1,246,000 c. ₱1,225,000 d. ₱1,250,00

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS