1. A certain nancial institution declared a P30,000,000 dividend for the common stocks. If there are a total of 700,000 shares of common stock, how much is the dividend per share?
2. certain corporation declared a 3% dividend on a stock with a par value of P500. Mrs Lingan owns 200 shares of stock with a par value of P500. How much is the dividend she received?
3. Corporation A, with a current market value of P52, gave a dividend of P8 per share for its common stock. Corporation B, with a current market value of P95, gave a dividend of P12 per share. Use the stock yield ratio to measure how much dividends shareholders are getting in relation to the amount invested.
Share
Answer:
1. To calculate the dividend per share, you can divide the total dividend declared by the number of shares of common stock.
Dividend per share = Total dividend declared / Number of shares of common stock
Dividend per share = P30,000,000 / 700,000
Dividend per share = P42.86
Therefore, the dividend per share is P42.86.
2. To calculate the dividend received by Mrs. Lingan, you can multiply the dividend rate by the number of shares owned and the par value per share.
Dividend received = Dividend rate x Number of shares x Par value per share
Dividend received = 3% x 200 x P500
Dividend received = P3,000
Therefore, Mrs. Lingan received a dividend of P3,000.
3. The stock yield ratio is used to measure the dividend return on a stock investment. It is calculated by dividing the annual dividend per share by the current market price per share and expressing the result as a percentage.
For Corporation A, the stock yield ratio is:
Stock yield ratio = (Dividend per share / Current market value per share) x 100%
Stock yield ratio = (P8 / P52) x 100%
Stock yield ratio = 15.38%
For Corporation B, the stock yield ratio is:
Stock yield ratio = (Dividend per share / Current market value per share) x 100%
Stock yield ratio = (P12 / P95) x 100%
Stock yield ratio = 12.63%
Therefore, Corporation A has a higher stock yield ratio compared to Corporation B, which means that shareholders are getting a higher dividend return on their investment in Corporation A.
Answer:
1. A certain financial institution declared a P30,000,000 dividend for the common stocks. If there are a total of 700,000 shares of common stock, how much is the dividend per share?
Given:
Total Dividend = P30,000,000.00
Total Shares = P700,000.00
Find: Dividend per share
Solution:
Dividend per share = total dividend / total shares
= P30,000,000.00 / P700,000.00
Dividend per share = 42.86
2. certain corporation declared a 3% dividend on a stock with a par value of P500. Mrs Lingan owns 200 shares of stock with a par value of P500. How much is the dividend she received?
Given:
Dividend percentage = 3%
Par value = P500.00
Number of Shares = 200
Find: Dividend
The dividend per share is P500.00 * 0.03 = P15.00. Since, there are 200 shares, the total dividend is P15 per share 200 shares = P3,000.00.
Dividend = Dividend percentage * Par Value * Number of Shares
= 0.03 * 500 * 200
Dividend = P3,000.00
3. Corporation A, with a current market value of P52, gave a dividend of P8 per share for its common stock. Corporation B, with a current market value of P95, gave a dividend of P12 per share. Use the stock yield ratio to measure how much dividends shareholders are getting in relation to the amount invested.
Corporation A:
Given:
Dividend per share = P8.00
market value = P52.00
Find: Stock Yield Ratio
Stock Yield Ratio = Dividend per share / market value
= 8/52
Stock Yield Ratio = 0.1538 or 15.38%
Corporation B:
Given:
Dividend per share = P12.00
Market value = P95.00
Find: Stock Yield Ratio
Stock Yield Ratio = 12/95
Stock yield ratio = 0.1263 or 12.63%
Therefore, Corporation A has a higher stock yield ratio than Corporation B. Thus, each peso would earn you more if you invest in Corporation A than in Corporation B. If all other things are equal, then it is wiser to invest in Corporation A.
Step-by-step explanation: