1. The market capitalization of Abutia Plc as at 31 December 2018 was GHC21 million. The stated capital of the company consists of 10 million ordinary shares . The profit after tax for the year ended 31 December 2018 was GHC 2.8 million . The dividend pay-out rate for the year was 80%. Calculate the Price earning ratio of Abutia Plc

A. 7.5 B. 5.6 C. 4.2 D. 3.36

2. Ashong Plc has two subsidiaries, Yvonne Plc and Wett Plc. It purchased 10,000 shares in Yvonne Plc on 1 January 2015 for GH35,000 when the retained earnings of Yvonne Plc stood at GH21,000. It purchased 15,000 shares in Wett Plc for GH30,000 on 31 December 2015 when the retained earnings of Wett Plc stood at GH16,000. The issued share capital (all issued at GHC 1 each ) of the two subsidiaries is as follows: 2 Yvonne Plc GH15,000 Wett Plc GH20,000 By the end of 2018, goodwill impairment losses totaled GH4,000. What is the carrying amount of goodwill in the consolidated statement of financial position at 31 December 2018 ?

A. GH10,000 B. GH10,800 C. GH6,600 D. GHnil