Module 8 - Stock Exchange Indicators

Question 1

Earnings per share equation

Answer 1

profits attributable to ordinary shareholders / number of shares in issue

Question 2

Dividend cover

Answer 2

Profits attributable to ordinary shareholders / dividends paid

OR (if one share)

Earnings per share / div per share

Question 3

Dividend yield

Answer 3

Dividend per share / share price

Question 4

Flat yield (bond)

Answer 4

Coupon / market price

Question 5

P/E ratio

Price/Earnings ratio

Answer 5

Market price per share / earnings per share

OR

Market capitalisation / earnings attributable to ordinary shareholders

Question 6

Redemption yield

Answer 6

Calculated as IRR

Question 7

Is interest yield another term for flat yield?

Answer 7

Yes