Accounting Ratios (Invetsment)

Question 1

Earnings per Share

Answer 1

Net Profit- Pref Dividend / no. of ordinary shares

Question 2

Dividend per Share

Answer 2

Total Dividend - pref dividend / no. of ordinary shares

Question 3

Earnings Yield

Answer 3

Earnings per share / Share price x 100

Question 4

Dividend Yield

Answer 4

Dividends per share / share price x 100

Question 5

Price Earnings Ratio

Answer 5

Share Price(Market Price) / Earnings per share (Sometimes DPS)

Period of time to recoup value of the share

Question 6

Dividend Cover

Answer 6

Net Profit - Pref Dividend / Total Dividend - Pref Dividend