Investment Ratios Flashcards
1
Q
Capital Gearing % =
A
(Long term loans / capital employed) x 100
2
Q
Dividend cover =
A
Profit after tax / Equity dividend
3
Q
Interest cover =
A
Operating profit / Interest cost (finance cost)
4
Q
Earnings per share =
A
Profit after tax / No. of equity shares
5
Q
Price earnings ratio =
A
Market price of share / earnings per share