Question

1. (10 points) The stock for a certain company pays a dividend of $0.84 per share. What would be the dividend payment by this company to an individual who owns 225 shares of the company's stock? 2. (10 points) What is the dividend yield of a stock that pays a dividend of $1.25 per share if that stock sells for $31.25 per share? 3. (10 points) What is the total of the interest payments to the holder of a bond with a $24,000 face value, a 3.5% coupon, and a five-year maturity? 4. (10 points) What is the net asset value of a mutual fund with $36 million in assets, $4 million in liabilities, and 2.5 million shares outstanding?

Please solve all the 4 problems.. They are short solutions so please solve all the questions. Will rate you for sure

Answer 1

Solution: 1) Dividend paid by Company is : $ 0.84 per share (That means $ 0.84 will be paid for one share held by shareholder) Dividend payment to an individual holding 225 shares will be $0.84 *225 Dividend payment to an individual holding 225 shares : $ 189 2) Dividend yield of stock: (Dividend per share * 100 ) / Market price per share Dividend yield of stock: ($ 1.25*100)/31.25 Dividend yield of stock: 4 % per annum 3) Face value of bond : $ 24000 Coupan: 3.5% year for maturity is 5 year 840 Interest for one year: $ 24000 * 3.5%= $ Interest for 5 year: $840 * 5= $4200 4) Net asset value of fund: (Total assets - Total liabilities) Total outstanding shares Net asset value of fund (Amount in Million): (36-4)/2.5 Net asset value = 12.8