Different markets for stocks and bonds
Scene 1 (0s)
). ). ). ). ). ). ). ). ). Different Markets for Stocks and Bonds Different Markets for Stocks and Bonds.
Scene 2 (14s)
). ). ). ). ). ). ). ). ). After going through this lesson, you are expected to: 1. describe the different markets for stocks and bonds 2. solve problems involving stock valuation, 3. solve for the face value and redemption value of bonds, and 4. solve for the bond premium and discount on bonds..
Scene 3 (37s)
). ). ). ). ). ). ). ). ). Stocks – share in ownership of a company Dividend – share in the company’s profit Dividend Per Share - ratio of the dividends to the number of shares Stock Market - a place where stocks can be bought or sold. The stock market in the Philippines is governed by the Philippine Stock Exchange (PSE) Market Value – the current price of a stock at which it can be sold Stock Yield Ratio – ratio of the annual dividend per share and the market value per share. Also called current stock yield. Par Value – the per share amount as stated on the company certificate. Unlike market value, it is determined by the company and remains stable over time..
Scene 4 (1m 11s)
) ) ) ) ) ) ) ) ). Stock valuation. ). ). ). ). ).
Scene 5 (1m 31s)
) ) ) ) ) ) ) ) ). ) ) ) ) ) ) ) ) ). Given: Total Dividend = ₱30,000,000.00 Total Shares = 700,000 Find: Dividend per share.
Scene 6 (1m 50s)
) ) ) ) ) ) ) ) ). SOLUTION. ) ) ) ) ) ) ) ) ). Dividend per share = Total Divident Total Shares.
Scene 7 (2m 2s)
) ) ) ) ) ) ) ) ). ) ) ) ) ) ) ) ) ). Example 2:.
Scene 8 (2m 20s)
) ) ) ) ) ) ) ) ). SOLUTION. ) ) ) ) ) ) ) ) ). The dividend per share is: ₱500 x 0.03 = ₱15 Since there are 300 shares, the total dividend is: ₱15/share x 200 shares = ₱3,000.00.
Scene 9 (2m 40s)
) ) ) ) ) ) ) ) ). ) ) ) ) ) ) ) ) ). Example 3:.
Scene 10 (3m 1s)
) ) ) ) ) ) ) ) ). ) ) ) ) ) ) ) ) ). Example 3:.
Scene 11 (3m 15s)
) ) ) ) ) ) ) ) ). SOLUTION. ) ) ) ) ) ) ) ) ). Corporation A.
Scene 12 (3m 26s)
) ) ) ) ) ) ) ) ). SOLUTION. ) ) ) ) ) ) ) ) ). Corporation B.
Scene 13 (3m 36s)
) ) ) ) ) ) ) ) ). Therefore, Corporation A has a higher stock yield ratio than Corporation B. Thus, each peso will earn more if you invest in corporation A than in corporation B. If all other things are equal, investing in Corporation A is wiser. As example 3 shows, the stock yield ratio can be used to compare two or more investments..
Scene 14 (3m 55s)
) ) ) ) ) ) ) ) ). ) ) ) ) ) ) ) ) ). DEFINITION OF TERMS IN RELATION TO BOND:.
Scene 15 (4m 18s)
) ) ) ) ) ) ) ) ). ) ) ) ) ) ) ) ) ). DEFINITION OF TERMS IN RELATION TO BOND:.
Scene 16 (4m 43s)
) ) ) ) ) ) ) ) ). ) ) ) ) ) ) ) ) ). Example 4:.
Scene 17 (5m 0s)
) ) ) ) ) ) ) ) ). SOLUTION. ) ) ) ) ) ) ) ) ). Annual Coupon amount: 300,000(0.10) = 30,000 Semi-Annual Coupon Amount: 30,000 ( ) = 15,000 Thus, the amount of semi-annual coupon is 15,000.00 Note: The coupon rate is used only for computing the coupon amount, usually paid semi-annually. It is not the rate at which money grows. Instead current market conditions are reflected by the market rate, and it will be used to compute the present value of future payments..
Scene 18 (5m 26s)
) ) ) ) ) ) ) ) ). ) ) ) ) ) ) ) ) ). Example 5:.
Scene 19 (5m 50s)
) ) ) ) ) ) ) ) ). SOLUTION. ) ) ) ) ) ) ) ) ). Substitute these values to compute the following:.
Scene 20 (6m 2s)
) ) ) ) ) ) ) ) ). SOLUTION. ) ) ) ) ) ) ) ) ). Purchase Price:.
Scene 21 (6m 14s)
) ) ) ) ) ) ) ) ). ) ) ) ) ) ) ) ) ). Thank You. Thank You.