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Q3. The following extent was obtained from the books of Amani Co. Ltd for the year ended 2016 and additional information on Industry averages Additional
Q3. The following extent was obtained from the books of Amani Co. Ltd for the year ended 2016 and additional information on Industry averages Additional information: (i) Dividends in arrears on preferences shares ksh 36.000 (ii) The preference show can be called for ksh. 51 per share Required: (a) Calculate and compare Amani co. Ltd ratios with the industry averages. (6marks) (b) Discuss factors one would consider in deciding on investing in the Company (6marks) (c) Explain any THREE limitations of ratio analysis. (3marks)
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