Investment ratios Flashcards
1
Q
EPS
A
Net profit ÷ average outstanding shares
£x.yy
2
Q
P/E ratio
A
Market price per share ÷ EPS
3
Q
Dividend yield
A
Dividends per share ÷ market price per share × 100
%
4
Q
Dividend cover
A
Net profit / Dividends paid out
5
Q
Dividend pay-out ratio
A
Dividends paid / Net profit x 100 %