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QUESTION THREE 3.1 The following information relates to Company F and Company G for the 2019 year. Both companies operate in the manufacture of

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QUESTION THREE 3.1 The following information relates to Company F and Company G for the 2019 year. Both companies operate in the manufacture of filters for motor vehicles. Company F was the first company to manufacture these filters whereas Company G is a new entrant into the market. Marthinos, a friend of yours has just inherited some funds from her late uncle and would like to invest it in a company with a good dividend payout. Which company would you recommend to her and why? Details Dividend declared and paid during the year R850 000 Market value per share Dividend per share Number of shares Company F Company G R95 000 R29 R31 R7,08 R3,17 120 000 30 000 3.2 When is the dividend yield most useful to calculate the value of shares in a company? Justify your answer? Guidelines: All answers must be typed out and workings must be showing.

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