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You are the financial manager of a competettive investment company in South Africa. You have been presented with two possible investments: Yarona Limited and Yoko Umited as shown below You have been supplied with the following information regarding the two companies: Yarona Limited Yoko Limited before interest and tax R1 500 000 Earnings Long term interest bearing debt R2 500 000 R1 000 000 R250 000 Earnings attributable to shareholders R1 058 400 R1713 600 Tax rate 28% Share Capital R1 250 000 R10 000 000 Number of ordinary shares issued 125 000 500 000 Number of ordinaryshares authorised 1 000 000 1 000 000 Current market price of the share R28.50 R15.00 Dividend pershare 84.24 R1.50 As a financial manager you are very concerned about the dividend yield and dividend payout ratio as these will be your indicators of the return on your investments. Required: Q3.1 Calculate the dividend yield for both companies. (0) Q.3.2 Calculate the dividend payout ratio for Yoko Limited. (4) Q.3.3 Calculate the price earnings ratio of Yarona Limited. Q.3.4 With reference to your answers in questions Q.3.1 to Q.3.3, drafta memorandum to (5) management in which you make a recommendation as to which company would be the better investment. Your recommendation should be substantiated with reasons. Assume that the dividend payout ratio of Yarona Limited is 50.08% and P/E ratio of Yoko is 4.38 Q.3.5 Which ratio is calculated by using the following formula: (1) Market price per share Book value per share