Neko Co., a firm that issues ordinary shares with an average beta, projected to declare a constant amount of P22 dividend annually. The current nominal rate of a 90-day treasury bill is 4% while the inflation is expected at 2.60%. The stock market exhibited a 9% overall return.

What is the intrinsic value of the ordinary share issued by Neko Co.?

 

You were hired as a financial planner for Neko Co., and you present the following bonds which all have a face amount of P6,000:
 ABC - 10% annual coupon rate; Bond value: P5,000
 XYZ - 12% annual coupon rate; Bond value: P8,000
If bond XYZ was sold after a year for a total expected return of 21%, What is its approximate selling price?