22. Using Dividend based valuation technique (zero growth model), what is the current value/true value of the shares in the problem, as stated? Investor CDE wants to buy 1,000 preference shares, P200...


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22. Using Dividend based valuation technique (zero growth model), what is the current value/true<br>value of the shares in the problem, as stated?<br>Investor CDE wants to buy 1,000 preference shares, P200 par value from Korean Company.<br>According to his sources, the preference shares come with a constant dividend of P30 per share<br>Investor CDE intends to hold the preference shares long-term and has no plans on selling this in<br>the near future. Investor CDE requires a 15% return on all of his investment. What is the value of<br>each preference share?<br>P200<br>P230<br>P215<br>P250<br>O O<br>O O<br>

Extracted text: 22. Using Dividend based valuation technique (zero growth model), what is the current value/true value of the shares in the problem, as stated? Investor CDE wants to buy 1,000 preference shares, P200 par value from Korean Company. According to his sources, the preference shares come with a constant dividend of P30 per share Investor CDE intends to hold the preference shares long-term and has no plans on selling this in the near future. Investor CDE requires a 15% return on all of his investment. What is the value of each preference share? P200 P230 P215 P250 O O O O
11. Using one period or multiple period valuation model, what is the current value/true value of the<br>shares in the problem as, stated?<br>Investor HAM want to buy shares of Flix Company. When he looked it up at the stock exchange,<br>Flix Company can be bought at P30 per share. Further research showed that dividends are stable<br>at P5 per year and it is expected to be resold at P40 per share after a year. Investor HAM expects<br>a 10% return on his investments and only expects to hold Flix Company shares for a year. What is<br>the value of the shares based on Investor HAM's computation?<br>(10 Points)<br>P40.91<br>P36.36<br>P4.55<br>P40<br>

Extracted text: 11. Using one period or multiple period valuation model, what is the current value/true value of the shares in the problem as, stated? Investor HAM want to buy shares of Flix Company. When he looked it up at the stock exchange, Flix Company can be bought at P30 per share. Further research showed that dividends are stable at P5 per year and it is expected to be resold at P40 per share after a year. Investor HAM expects a 10% return on his investments and only expects to hold Flix Company shares for a year. What is the value of the shares based on Investor HAM's computation? (10 Points) P40.91 P36.36 P4.55 P40

Jun 05, 2022
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