Computing investment ratios Question 1 to 4 related to the following information from Umbrella plc: Profit for the year before interest and tax 210,000 Profit for the year after tax 150,000 Number of issued ordinary shares of 1 each 500,000 Dividend on ordinary shares for the year 60,000 Current market price per share 2.50 

Question 1 What is the dividend yield of Umbrella plc?

A. 4.8% 

B. 12% 

C. 30.% 

D. 48% Answer: Explanation: 

Question 2 What is the dividend cover of Umbrella plc?
A. 0.3 times 

B. 0.4 times

C. 2.5 times 

D. 3.5 times