Question
Master Chef Limited became an ASX public listed company by issuing 11,110,000 ordinary shares at $1.45 each on 01 July 2016. At the end of
Master Chef Limited became an ASX public listed company by issuing 11,110,000 ordinary shares at $1.45 each on 01 July 2016.
At the end of one year (on 30 June 2017), the price of a share was $1.20. For the period of one year, the company paid dividends of 20 cents per share.
The financial results of Master Chef for this year show the following information:
Master Chef Limited
Income Statement (Selected items) For the Year Ending on 30 June 2017
$'000 Revenue - Rental income 8,440
Operating Profit before items below Depreciation and amortisation Interest expense
6,107 3,534 1,284
The income tax rate for companies in Australia for this period was 30%.
An investor purchased 100,000 ordinary shares on issue and held these shares for one year to 30 June 2017.
Calculate the following financial measures for Master Chef:
(a) Price-earnings ratio.
(b) Dividend yield for the year.
(c) Holding period return for the investor over the year. (d) Market capitalisation on 30 June 2016.
Hint: you will need to calculate the profit after tax for the year for Master Chef.
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