GERONIMO, John Verjo C.

FMPMC 222- 1398

1. San Miguel Corporation announced that the issuance of dividend at the end of this year amounting to
₱3.00 per share. An investor purchased the stock of SMC at ₱120. The stock is expected to hike at ₱125
upon the issuance of dividend. The investor’s return would be?

o Rt =¿¿ ¿
3+(125−120)
o
120
3+5
o
120
o 6.67%

2. Aboitiz Power Corporate have issued ₱1.00 per share last year and it is expected to grow by 18% at the
end of this year. At the beginning of the year the stock price is ₱25.00 and it is expected to increase by
30% at the end of the year. The investor’s return would be?
3. JFC provided the following historical prices:

Month Prices HPR HPY

0 110
1 115 1.045 0.045
2 120 1.043 0.043
3 118 0.983 -0.017
4 123 1.042 0.042
5 126 1.024 0.024
6 125 0.992 -0.008
7 130 1.040 0.040
8 132 1.015 0.015
9 135 1.023 0.023
10 133 0.985 -0.015
11 134 1.008 0.008
12 138 1.030 0.030

Geometric Mean
= [(1.045) (1.043) (0.983) (1.042) (1.024) (0.992) (1.040) (1.015) (1.023) (0.985) (1.008) (1.030)]
=1- 1.2524
=0.2524 or 25.24%

Arithmetic Mean
= [0.045+0.043+(-0.017) +0.042+0.024+(-0.008) +0.040+0.015+0.023+(-0.015) +0.008+0.030+0.045]
= 0.2318 / 12
=0.0193 or 1.93%