investment ratios

Question 1

dividend payout ratio

Answer 1

dividends announced for the year/ earnings for the year available for dividends X100

Question 2

dividend cover ratio

Answer 2

net profit / dividend announced for the year

Question 3

dividend yield ratio

Answer 3

dividend per share /market value per share X100

Question 4

earnings per share

Answer 4

net profit / number of ordinary share

Question 5

price earning ratio

Answer 5

market value per share / earnings per share