General Electric has a share capital structure as follows:
•4,000,000 ordinary shares with a nominal value of $1 each.
•Dividends declared at 5% of net profits after tax.
•Net profit after tax: $2,400,000
•Annual sales: $30,000,000
•Market price per share: $4.25
Tasks:
1.Compute the earnings per share.
2.Calculate the dividend yield.
3.Determine the price earnings ratio.