The following information is available for two companies for the year ended 31 October 2014. a. Calculate
Question:
The following information is available for two companies for the year ended 31 October 2014.
a. Calculate the following investment ratios for the two companies:
i. Gearing ratio
ii. Dividend cover
iii. Earnings per share
iv. Dividend paid per share
v. Dividend yield
vi. Price earnings ratio.
b. Comment on the information gained from each of the ratio calculations.
Transcribed Image Text:
Gilchrist Ltd Burrell Ltd 2$ Operating profit 2 458 000 1 276 000 Debenture interest 300 000 Taxation 983 000 382 000 Preference dividend 240 000 60 000 Ordinary dividends 393 000 320 000
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a Ratio calculations i Gearing ratio Longterm liabilities Shareholders equity x 100 For Gilchrist Ltd Longterm liabilities 1276000 10 debentures Shareholders equity 7540000 ordinary shares of 50 each ...View the full answer
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Related Book For
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone
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