Refer to Question 3 at the end of the previous chapter (RC Ltd). Required (a) Use the

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Refer to Question 3 at the end of the previous chapter (RC Ltd). Required

(a) Use the income statements and balance sheets to calculate the following for Year 7 and Year 8 for RC Limited. (i) Gearing ratio (ii) Interest cover (iii) Return on shareholders ’equity (iv) Ordinary dividend cover (see information below) (v) Earnings per share The following additional information is provided concerning dividends paid and proposed.

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