Assignment 6
Assignment 6
1. Compute for the price earnings ratio if the earnings per share is P5.50.
2. Pearl Co. declared dividends of P2.00 per share for their performance last year after the
declaration of dividends the market value per share increased to P45.00 per share. What is
the dividend yield ratio of Pearl Co.? 0.0444 or 4.44%
3. Emerald Company’s statement of financial position as of December 31, 2020 reported the
following: Asset – P400 Million; Liabilities – P100 Million; Equity – P300 Million with
outstanding shares of 10 million. The Emerald’s stock is already selling at P37 per share.
a. How much is the Book-to-Market ratio? 0.81
b. Assuming Emerald has not available market information, but the industry Book-to-
Market ratio is 1.2, what is the market value of Enlightened? P25
1. Formula:
Given: EPS -P5.50
Year MVPS
1 27.500/5.50
2 30.250/5.50
3 22.000/5.50
4 17.875/5.50
5 28.875/5.50
2. Formula:
DYR=P2.00/P45.00
DYR=0.0444 or 4.44%
3. Formula:
Total Assets-Total Liabilities= 400M-100M=300M
a. NBVPS=300M
10M
NBVPS=P30
BTMR= 30
37
BTMR= 0.81
b. BTMR-P1.2
NBVPS-P30
MVPS= 30/1.2
MVPS=P25