The issued share capital of Soresson plc consists of 1,000,000 ordinary shares of 50p each and 250,000
Question:
The issued share capital of Soresson plc consists of 1,000,000 ordinary shares of 50p each and 250,000 6% preference shares of £1 each.. In the year to 31 March 2020, the company's profit after tax was £90,000. Dividends paid during the year comprised the preference dividend for the year and an ordinary dividend of £55,000. The market price of the company's ordinary shares on 31 March 2020 was 70p per share.
Required:
Calculate the following ratios for Soresson plc:
(a) Earnings per share
(b) Dividend cover
(c) Dividend yield
(d) Price earnings ratio.
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