Q5 Difficult Formulas

Question 1

Earnings Per Share

Answer 1

Net Profit - Preference Dividend / Issued Ord. Shares

Question 2

Debt to Capital Employed Ratio/%

Answer 2

Debentures + Pref. Share Capital / Capital Employed x 100 -> Percentage should be below 50% to be lowly geared

Question 3

Price Earnings Ratio

Answer 3

MP of one ordinary share / earnings per share

Question 4

Dividend Per Share

Answer 4

Total Dividend - Preference Dividend / Issued Ord. Shares

Question 5

Dividend Yield

Answer 5

Dividend Per Share / MP of ord. share x 100

Question 6

Dividend Cover

Answer 6

Earnings Per Share / Dividend Per Share

Question 7

Price Dividend Ratio

Answer 7

MP of one ord. share / Dividend per share

Question 8

Earnings Yield

Answer 8

Earnings Per Share / MP of one Ord. Share x 100