Jndertake a ratio analysis of the company that includes he following ratios: - Return on equity: The net income and shareholder's equity information should be sourced from the company's latest annual report. - Earnings per share: The number of issued shares should be sourced from the company's latest annual report - Price to Earnings Ratio: Use the share price (opening or closing) on 2nd October 2023 - PER to Growth Ratio: On the Hargreaves Lansdown website, open the trading page for your company. Click on the Financials tab and scroll to Earnings Per Share. Focus on the Adjusted EPS and, using the two most recent annual figures, calculate an EPS growth rate. Use this and your PER ratio to calculate the company's PEG. Provide a brief analysis on whether you think the EPS growth figure is a meaningful estimate of how the company's future earnings are likely to evolve. - Dividend Yield: Sum the dividend payments for the year to 2nd October 2023 and use it to calculate the dividend yield on that date. - Price to Book Value: Calculate the company's book value per share based on the value of equity in the latest annual report. Using the share price on 2nd October 2023, derive the price to book value. Provide a brief analysis on the scale of the PBV ratio and what it might indicate about the current share price. 1a. Holding Period Return To tackle Task 1a, start from the position where you invested 10,000 in the company on Friday 2nd October 2020. The core aim is to calculate the three-year holding period return to Monday 2nd October 2023. The return calculation must incorporate dividend payments, treated as being reinvested in additional shares in the company at the opening share price on the dividend payment date. To undertake task 1a, you will need to assemble company data, especially: - The opening share price on Friday 2nd October 2020 - The dividend payments during the period, together with the payment dates - The opening share prices for your company for each of the dividend payment dates. - The opening share price on Monday 2nd October 2023 For guidance on searching for the data, consult the learning materials for the first six topics. In addition, the lecture session scheduled for Monday 7th November 2023 will be an 'how to tackle' Task 1 . It is of utmost importance that the essential data is presented in an organised, easily understandable, manner. Likewise, all calculations of must be shown; answers without demonstration of the inputs will incur penalties (even if they are correct). As stated earlier, the onus isn't on me the marker to search your work for the inputs. It is on you to organise the presentation of your analysis in a manner suited to being easily understood. There is no need for extensive generalised narratives. The written aspect should focus on outlining each step in your analysis and summarising the key outcomes. (12 marks)
