Hamsir is a stock-market listed fashion company that has just released its annual accounts. Chief Executive Una Carthy said she was delighted to announce another rise in Earnings Per Share (EPS) over the previous year. Una said the company's strategy is to create quality cutting-edge fashionable clothes, and to attract sensible dividend-conscious investors from all over the world.

Ms Carthy feels that Hamsir's 18.00 share price does not reflect the company's wonderful recent successes. Ms Carthy referenced the company's competitor -Crazee Fashion Plc-, as an example to which Hamsir should be compared. Crazee Fashion has a current share price of 26.00, and recently reported full-year EPS of 1.63.

Below find data from the most-recent and previous years.

Earnings Per Share (EPS) and Dividend Per Share (DPS) for Hamsir Plc.

Year as ended E.P.S D.P.S

30.04.20 2.00 1.60

30.04.19 1.80 1.44

30.04.18 1.44 1.15

30.04.17 1.01 0.81

30.04.16 1.20 0.96

Required

(a)Analyse the above data, and determine the type of dividend policy Hamsir has displayed over the past few years ?

(b)Calculate Hamsir's Price Earnings multiple (P.E.), (ii) compare it to that of Crazee Fashions, and (iii) discuss why Hamsir's share price might be worth a different multiple of earnings than its competitor ?

(c) Give some input to Ms Carthy on alternative dividend policies that mightbe worth considering?