... MTN LTE 10:56 AM 80% Done 23 of 23 Question 8 Income statement for the year ended 31 December, 2019 of KKMTN Ghana Ltd 2018 2019 '000 Turnover 420,000 523,600 '000 Cost of sales (330,000) (417.200 Gross profit 89,000 106,400 Expenses: Administration 44,600 50,200 Selling and distribution 15,400 (60,000) 19.600 (69.800) Profit before interest 29,000 36,600 Debenture interest (2.800) Net profit before tax 29,000 33.800 Taxation (8,000) (10.000) Net Profit after tax 21,000 23.800 Ordinary dividend paid 8,400 Ordinary shares issued 12 million and trading at 3 each as at yesterday on GSE. You are required to compute the following investment ratios: a) Earnings per share b) Dividend per share c) Payout ratio d). Price earnings ratio e). Earnings yield (25 marks) 9.250 Question 9 Your dad plans to invest in equities listed on the GSE. His investment analyst told him three (3) things that has gotten him confused. First, he must look for industries that are matured, secondly he should analyze the economic structure of the industry and thirdly, possibility of threat(s) of entry into the sector or industry Analyze to your dad how these three (3) variables would impact on corporate performance and their importance to him as a prospective investor to enable him take a decision to invest in IPO's slated for December 2020. (15 marks) b) Describe the following bond features i. Yield to maturity 11. Par value iii. Coupon rate (6 marks) What is bond rating? State and explain two factors that influence bond ratings by rating agencies such as Moody's and Standards & Poor's. (4 marks)