The following information is taken from Ted Baker’s Report and Accounts 2012.

Group Income Statement For the 52 weeks ended 28 January 2012 Note 2012 2011

£'000 £'000 Revenue 2 ets o25 187,700 Cost of sales (83,419) (71,923)

Gross profit 132,206 115,777 Distribution costs (82,358) (73,690)

Administrative expenses (29,640) (24,259)

Exceptional costs (2,814) =

Licence income 6,733 6,227 Other operating income 142 77 Operating profit 24,269 24,132 Finance income 4 45 42 Finance expenses 4 (208) (120)

Share of profit of jointly controlled entity, net of tax 12 149 174 Profit before tax a ; : 36 24,255 24,228 :

Income tax expense 6 (6,698) (6,948)

Profit for the period . ~~ . 17,557 . 17,280 :

Group Statement of Comprehensive Income For the 52 weeks ended 28 January 2012 Note 2012 2011

£'000 £'000 Profit for the period 17,557 17,280 Extracts from the notes ; 2012 2011 4 Of which, interest payable ; (208) (65)
8 Total dividends for the period (£'000) 9,744 8,574 9 Weighted number of ordinary shares (000) 43,209 41,786 15 Of which, trade receivables (£'000) 19,744 18,182 18 Of which, trade payables (£'000) (15,910) (18,888)
20 Weighted average share price (pence) 478.0 441.4 20 Maximum risk free interest rate (%) 4.70 PA)

Required

(a) Calculate the following ratios for 2012 and 2011. Show the formulae (define any ambiguous terms) and all your workings. In each case, explain the purpose of the ratio and interpret your results from an investor's perspective.
(i) Dividend per share.
(ii) Dividend yield.
(iii) Earnings per share.
(iv) Price-earnings.
(v) Return on equity.
(vi) Return on capital employed.
(vii) Operating profit margin.
(viii) Capital turnover.

(b) Conclude your analysis with brief comments on any change in the risks and rewards to investors over the period.