CHAPTER EXERCISES
I.
Semi-annual interest : Annual Percentage Rate and
Annual Percentage Yield Computation:
1. What is the Annual Percentage Rate of Interest or
Coupon rate?
2. What is the Annual Percentage Yield of Interest?
192
II.
Quarterly interest
CHAPTER EXERCISES
NAME
SCORE:
SECTION:
DATE:
PROBLEM SOLVING: Supply the answer for each requirement.
I.
Dividend Discount Model Constant Growth: dividend per share (DPS),
dividend yield, capital gains yield and stock price computation:
SGV Inc.:
1. What
VALUATION OF STOCKS
PROBLEM A
BGC inc. just paid a dividend of P3 per share. The dividend is expected to grow at 8% a year and
the rate of return on the said is 12%.
1.
2.
3.
4.
5.
6.
7.
What is the expected dividend per share in year 1?
What is the expec
SOLUTIONS TO
CHAPTER 4 EXERCISES
I.
Expected Return, Variance, Standard Deviation and Coefficient of
Variation computation:
1. What is the Expected Return on this investment? 5.6%
2. What is the total variance? 0.008284
3. What is the Standard Deviation?
VALUATION OF STOCKS
PROBLEM A
BGC inc. just paid a dividend of P3 per share. The dividend is expected to grow at 8% a year and
the rate of return on the said is 12%.
1.
2.
3.
4.
5.
6.
7.
What is the expected dividend per share in year 1?
What is the expec
Financial Accounting and Reporting II
Mock Quiz
Problem I
On March 1, Y1, Prudence Company purchases a debt investment from Charity Company. The face value of
the bonds is P4,000,000 with 10% interest rate. Interest rate for similar bonds is at 12%. Inter
Part I. Multiple Choice.
1. For the outputs of a joint process, which among the following have the highest relative
high sales value?
a. Joint-products
c. Scrap
b. By-products
d. Waste
2. Which of the following statements best describes a by-product?
a. I