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Range Unlimited Ltd: R'000 Earnings before interest and tax Interest expense Net profit before tax Taxation Net profit 31 December 2019 4 500 000 670

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Range Unlimited Ltd: R'000 Earnings before interest and tax Interest expense Net profit before tax Taxation Net profit 31 December 2019 4 500 000 670 000 3 830 000 1 072 400 2 757 600 31 December 2018 3 950 000 900 000 3 050 000 854 000 2 196 000 Total dividend paid 1 000 000 700 000 Shares in issue (par value 50c) Share price per share at 31 December (Rands) 50 000 230 50 000 280 Industry ratios for 2019 Dividend cover Dividend yield 3 times 7% Required: Calculate the following ratios for the 2018 and 2019 years: 217,39 5.1 Dividend cover 178,57 (2) 5.2 Dividend yield (2) 5.3 Comment on the ratios above, relative to the prior year, as well as the industry. Explain what the Range Unlimited dividend cover and dividend yield imply about the company. (4)

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