Solve for the dividends for Company A and B, and Interest Income for Company C and...

 

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Solve for the dividends for Company A and B, and Interest Income for Company C and D, to determine the best financial instrument: You are an investor looking for a possible large profit on your investments during this time of COVID 19 pandemic. You have Php 5,000,000 in a bank account earning 5% interest compounded annually. You are deciding whether to invest this amount of money or a part of it on the following financial instruments offered by 4 companies: a. Company A * Common Stocks * Par value: Php 500 * Number of common shares: 100 * Dividend per Share: Php 5 b. Company B Preferred stock * Dividend rate: 1.5% * Number of preferred shares: 100 * Par Value per share: Php 350 Assuming that the bond was dated from January 1- December 31 c. Company C Bond * Coupon rate : 25% ✰ Face value : Php 1,800 d. Company D Face Value: Php 3500 Coupon rate : 13% Solve for the dividends for Company A and B, and Interest Income for Company C and D, to determine the best financial instrument: You are an investor looking for a possible large profit on your investments during this time of COVID 19 pandemic. You have Php 5,000,000 in a bank account earning 5% interest compounded annually. You are deciding whether to invest this amount of money or a part of it on the following financial instruments offered by 4 companies: a. Company A * Common Stocks * Par value: Php 500 * Number of common shares: 100 * Dividend per Share: Php 5 b. Company B Preferred stock * Dividend rate: 1.5% * Number of preferred shares: 100 * Par Value per share: Php 350 Assuming that the bond was dated from January 1- December 31 c. Company C Bond * Coupon rate : 25% ✰ Face value : Php 1,800 d. Company D Face Value: Php 3500 Coupon rate : 13%

Answer rating: 100% (QA)

Investment in Company C is considered to 100 extent But if the investor is not ... View the full answer