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Abacus Ltd is a South African mining company which is listed on the Johannesburg Securities Exchange (JSE). . The following information relates to Abacus Ltd:
Abacus Ltd is a South African mining company which is listed on the Johannesburg Securities Exchange (JSE). . The following information relates to Abacus Ltd: The share price today is R8; There are 15 million ordinary shares in issue; Total annual ordinary dividend: R4 million. . . The dividend yield for Sucaba Ltd (another mining company, similar to Abacus Ltd) is 13%. Q.3.1 Investment ratios are concerned with the return on investment for shareholders. The dividend yield is an example of an investment ratio. Q.3.1.1 Calculate the dividend yield for Abacus Ltd. Q.3.1.2 Provide a comparison of the dividend yields of Abacus Ltd (as calculated in Q.3.1.1) and Sucaba Ltd (as provided above). Your answer should indicate which of the two (2) companies would be a better investment opportunity based on the dividend yield. (3) (4)
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