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.₱230 ₱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
Solution:
1. Earnings per Share = Earning Price per Share
Price-Earnings Ratio

= ₱3,750
15
Earning per Share = ₱250

2. Current Yield = Annual Dividend per Share

Current Price per Share

= ₱150
₱3,750

Current Yield = 0.04% or 4%

3. Annual Dividend per Share = Current Price per Share x Current Yield

= ₱1,250 x 0.08

Annual Dividend per Share = ₱100

4. Price-Earnings Ratio = Current Price per Share

Earnings per Share

= ₱1,250
₱512

Price-Earnings Ratio = 2.44140625 or 2:1

5. Annual Dividend per Share = Current Price per Share x Current Yield

= ₱4,000 x 0.1

Annual Dividend per Share = ₱400

6. Current Price per Share = Earnings per Share x Price Earnings Ratio

= 100 x 40

Current Price per Share = ₱ 4,000

7. Earnings per Share = Current Price per Share

Price-Earnings Ratio

= ₱1,750
₱35

Earnings per Share = ₱50

8. Current Yield = Annual Dividend

Current Price per Share

= ₱140
₱1,750

Current Yield = 0.08% or 8%

9. Current Price per Share = Annual Dividend per Share

Current Yield

= ₱900
0.12

Current Price per Share = 7,500

10. Price-Earnings Ratio = Current Price per Share

Earnings per Share

= ₱7,500
₱383

Price-Earnings Ratio = 19.58224543 or 20.1

 B. Complete the information below using Bonds.

Redemption Value Conversion per year Coupon Payments

Bond Rate (𝑟) (𝑘)
(𝐹) (𝑚)
11. ₱41.67 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:

11. F = k
r

= ₱7.50
₱0.18

F = ₱41.67

r
12. k = ( m )
D
i
= ₱680(0.11/4)
g
k = ₱18.70i
t
a
l r
13. k = F (
i m )
nD
= ₱900e(0.128/4)
i
qg
k = ₱28.80
ui
at
l ra
14. k =F ( im l )
tD i
y in
= ₱1,300 ge (0.12/6)
v iq
k = ₱26 s u
t
aa
Dll
15. F = k
r
i ii
gnt
= ₱105i ey
0.15 t q
a uv
F = ₱700l as
Dl
i iD
v ti
i yg
di
05 Task Performance 1 e vt *Property of STI
sa Page 1 of 1
l