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  • Assignment 6

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    Janeth Navales
    116 views2 pages
    1. The document provides information to calculate price-earnings ratios based on earnings per share and market value per share for 5 years for a company. 2. It also gives the dividend yield ratio calculation for Pearl Co, which declared a dividend of P2.00 per share, increasing the market value to P45.00 per share and yielding a ratio of 0.0444 or 4.44%. 3. Financial information is provided for Emerald Company to calculate its book-to-market ratio of 0.81 based on asset, liability and equity values. It also calculates the implied market value of P25 per share for Emerald using its book-to-market ratio and industry average.

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    ASSIGNMENT

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    ASSIGNMENT 6

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    1. The document provides information to calculate price-earnings ratios based on earnings per share and market value per share for 5 years for a company. 2. It also gives the dividend yield ratio calculation for Pearl Co, which declared a dividend of P2.00 per share, increasing the market value to P45.00 per share and yielding a ratio of 0.0444 or 4.44%. 3. Financial information is provided for Emerald Company to calculate its book-to-market ratio of 0.81 based on asset, liability and equity values. It also calculates the implied market value of P25 per share for Emerald using its book-to-market ratio and industry average.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    116 views2 pages

    Assignment 6

    Uploaded by

    Janeth Navales
    1. The document provides information to calculate price-earnings ratios based on earnings per share and market value per share for 5 years for a company. 2. It also gives the dividend yield ratio calculation for Pearl Co, which declared a dividend of P2.00 per share, increasing the market value to P45.00 per share and yielding a ratio of 0.0444 or 4.44%. 3. Financial information is provided for Emerald Company to calculate its book-to-market ratio of 0.81 based on asset, liability and equity values. It also calculates the implied market value of P25 per share for Emerald using its book-to-market ratio and industry average.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    ASSIGNMENT #6

    1. Compute for the price earnings ratio if the earnings per share is P5.50.

    Year Market Value per share P/E Ratio


    1 27.500 5.00
    2 30.250 5.50
    3 22.000 4.00
    4 17.875 3.25
    5 28.875 5.25

    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

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