QUESTION TWO [25] Altar Ltd's Statement of Financial Position for 2020 and 2021 financial years are below: R R Assets 2020 2021 Non Current Assets 6 000 000 6 7 7 200 000 Inventory 205 000 330 000 Receivables 320 000 415 000 Cash 120 000 420 000 6 645 000 8 365 000 Equity and Liabilities Share Capital (R2 shares) 4 000 000 4 400 000 Share Premium 300 000 420 000 Retained Income 600 000 740 000 Long term Debt 1 1 100 000 2 100 000 Payables 645 000 705 000 6 645 000 8 8 365 000 Abbreviated Income Statement for the year ended 2021 R Sales 1 200 000 Cost of sales 600 000 Depreciation 60 000 Interest expense 40 000 Net Income before Tax 500 000 Tax (30%) 150 000 Dividends 210 000 Retained Income 140 000 Note: a. Shares are currently trading at R2,60 per share. b. The new shares were issued at the beginning of the year. 13 NAR R- Required: 2.1 Calculate the current ratio for 2021 and comment. The ratio for 2020 was 1:1. (4) 2.2 Calculate the dividend yield for 2021 and explain the importance of your answer. (6) 2.3 With regard to the Share Capital: 2.3.1 Calculate the number of new shares issued. (3) 2.3.2 Calculate the premium per share. (3) 2.4 Calculate the Price Earnings (PE) ratio for 2021 and explain this ratio. (5) 2.5 Calculate the market to book ratio and state the significance of this ratio. (4)