Gearing/Investment Ratios

Question 1

Dividend payout ratio

Answer 1

Dividends announced for the year
——————————- x100
Earnings for year available for dividends

Question 2

Dividend yield ratio

Answer 2

Dividend per share/(1-t)
————————— x100
Market value per share

Question 3

Earnings per share

Answer 3

Number of ordinary shares in issue

Question 4

Price per earnings ratio (P/E)

Answer 4

Earnings per share

Question 5

Interest cover ratio

Answer 5

Interest payable