9 Dividend ratios. The Java Paper and Packaging Company has reported the following information for the financial year just ended.

£m Turnover 20.67 Profit before tax 4.13 Taxation 1.24 Profit after tax 2.89 Dividend (net) 0.95 Retained earnings 1.94 The company has an issued share capital of £5m (at 25p par) and the market price of the share at the year end was £2.75.

Using the above information calculate:

(a) Dividend per share (DPS);

(b) Earnings per share (EPS);

(c) Dividend payout ratio;

(d) Earnings retention ratio;

(e) Dividend cover;

(f) Dividend yield (gross).

Assume an income tax rate of 20 per cent where relevant.

Comment on your findings.