SUMMATIVE STOCK AND BONDS; LOANS

GENERAL
TEST 2.2 MATHEMATICS
Name: Score: / 15
Section:

Solve each problem. Show your solution. Final answer should be written in complete sentence.
1. Mikoy owns 240 shares of 6% preferred stocks with a par value of ₱ 75 .
a. What dividend does he receive each year?

b. What is his stock yield if he paid ₱ 70 for the stock?

2. What is the approximate yield maturity of a 6%, ₱ 2,000 bond maturing 5 years and is bought at ₱ 90?

3. Bagnetmik, Inc. earned ₱ 600,000 in a year. How are the dividends to be distributed between preferred and
common stockholders if management declares a dividend of ₱ 3.00 per share of common stocks? What is the
accumulated retained earnings? Assume that Bagnetmik has the following:
Capital Stock
4,000 shares of preferred stocks, 6% per value at ₱ 80 each.
50,000 shares of common stocks, par value at ₱ 25 each.

4. Determine the cost of the loan if a man borrows ₱ 4,000 and pays ₱ 180 in 24 equal installments?