Chapter 14

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Calculating Dividend Amounts. Betty and John Martinez own 220 shares of ExxonMobil common stock. ExxonMobil's quarterly dividend is $1.76 per share. What is the amount of the dividend check that the Martinez couple will receive for this quarter?

$387.20 (Quarterly dividend = 220 shares $1.76 = $387.20)

Calculating Earnings Per Share, Price-Earnings Ratio, and Book Value. As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax earnings of $2 million, and 750,000 outstanding shares of common stock. a. Calculate the earnings per share of Bozo Oil's common stock. Round to two decimals.

$2.67 (2,000,000/750,000)

Calculate the book value of a share of Bozo Oil's common stock. Round to two decimals.

$5.33 ((Assets - Liabilities) / Number of shares outstanding = Book value per share)

c. Calculate the total return for your Coca-Cola investment when you sold the stock at the end of two years.

$859 (Current Return = ($1.55 per share + $1.67 per share) 100 shares = $322 Capital Gain = ($58 per share selling price - $52 per share purchase price) 100 shares = $600 - ($29 per share + $34 per share) commissions = $537 Total Return = $322 Dividends + $537 Capital Gain = $859)

b. Assuming that a share of Bozo Oil's common stock has a market value of $40, what is the firm's price-earnings ratio?

15 (40/2.67)

d. Calculate the holding period return for your Coca-Cola investment at the end of the two-year period. (hint: your return = profit/initial investments)

16.43% (Original investment = (100 shares x $52 purchase price per share) + $29 commission = $5,229 holding period return = $859 total return / $5,229 initial investment)

b.Calculate the dividend yield for your Coca-Cola stock at the time you sold it.

2.88%

Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $52 a share, plus a total commission of $29 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.55 per share for the first year, and $1.67 per share, the second year. Also assume that at the end of two years, you sold your Coca-Cola stock for $58 a share minus a total commission of $34 to sell the stock. a. Calculate the dividend yield for your Coca Cola stock at the time you purchased it.

2.98% ($1.55 per share first year dividend ÷ $52 original purchase price = 0.0298 = 2.98 percent.)


संबंधित स्टडी सेट्स

Chapter 33: Caring for Children in Diverse Settings Prep U

View Set

Entomology & Autopsy Quiz Study Guide

View Set

Chapter 2: Analyzing the Effect of Transactions

View Set

Chapter 3: Health, Wellness, and Health Disparities

View Set

Allez Viens 2-2 la maison: la description

View Set

AP Macroeconomics Module 29 - Loanable Funds

View Set

Inflammatory bowel disease (IBD) Practice Questions (Test #2, Fall 2020)

View Set