Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. XYZ Ltd is listed on the London Stock Exchange. On 30 th June the market price for each its one million shares was 2.50.

1. XYZ Ltd is listed on the London Stock Exchange. On 30th June the market price for each its one million shares was 2.50. The companys profit after tax was 600,000 and the directors had paid dividends of 40 pence per share. Based on data calculate:

a. Dividend Yield

b. Dividend Payout Ratio

c. Price/Earnings (P/E) Ratio

2. A product is purchased by retail firm on five separate occasions:

Dates unit Unit price

2 January

4,000

$3.1

2 March

3,000

$3.5

2 May

5,000

$3.8

2 July

5,000

$4.2

2 September

7,000

$4.6

Company have two options of method to calculate inventory, that are LIFO, and Average.

a) Calculate the cost of 25,000 units sold for each method.

b) If the company can sell the product on price of $6.5 per units. Calculate the gross profit of the company for every method of inventory.

c) Which method is the best for the company?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Communication And Auditing A Step By Step Guide

Authors: Melanie McKay, Elizabeth Rosa

1st Edition

075931652X, 978-0759316522

More Books

Students also viewed these Accounting questions