Question

Option 1: Company ABC’s selling stock is ₱ 1,500.00 per share that will have a dividend of ₱ 200.00 per year. The stock can be sold after two years at ₱2,000.00 and the market requires a rate of return of 15%. The stock can be sold after two years at ₱2,000.00 and the market requires a rate of return of 7%. Determine the stock yield ratio? *

ROUND OFF, NUMBERS ONLY, DO NOT PUT COMMA, PERIOD, ZERO OR PERCENTAGE SIGN.

Answer 1

$$\frac{0.15\times2,000}{1,500}=0.2$$

$$\frac{0.07\times2,000}{1,500}=0.093$$