• GEARING RATIO
• (2019)= 20.85
• (2018)=21.14

INTEREST COVER

(2019) =1O TIMES

(2018) =1O TIMES

• Investor ratio:

EPS=

(2019) = 52500290000/1=0.1810p

(2018) =36660240000/1=0.1527p

P/E=

(2019) =13.809 TIMES

(2018) =16.366 TIMES

Q1:---Based on the gearing and investor ratio you should give a constructive suggestion to the company about funding the machine using a bank loan ---

Advice Finance Manager of Greenwood Plc whether the organization is able to receive a loan or look for other options (specify clearly the available options, if any).