Question
HDR Investment Limited is a listed company on the Junior Market of the Jamaica Stock Exchange. The company was established in 1985 and its market
HDR Investment Limited is a listed company on the Junior Market of the Jamaica Stock Exchange. The company was established in 1985 and its market share, customer base and profitability grew exponentially. The companys market capitalization as at December 31, 2019 was $750m and the outstanding shares at the same date was 40m and the authorized shares were 50m. The company also has 12m preference at par value of $1.10 each with 9.5 percent interest rate per annum. The par value for its equity shares was $2.70 each and net income before preference dividend as at December 31, 2019 was $45m and dividend payment for the current period was $6m. The value of the companys non-current assets were $470m and the total liabilities were $65m.
Price Earnings Ratios and dividend yield ratios are too complex and therefore potential investors cannot benefit from these stock market measurement? Explain?
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