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The following financial information is available at 30 June 2019 for Now ltd Profit before tax Taxation Profit after tax Dividends: preference Ordinary -Interim
The following financial information is available at 30 June 2019 for Now ltd Profit before tax Taxation Profit after tax Dividends: preference Ordinary -Interim - Final Retained profit Ordinary shares Rs1 Price per share (Rs) 2017 2018 Rs'000 Rs'000 2019 Rs'000 375 475 425 25 50 50 350 425 375 50 50 50 50 60 70 150 190 190 100 125 110 3,000,000 3,150,000 3,150,000 2.25 3.00 2.75 Calculate five investment ratios for the year 2017, 2018 and 2019. (7 marks) Give possible explanations for the changes that have occurred in the figures calculated for the years 2018 and 2019. (3 marks) Explain the importance of any three investment ratios to investors. (3 marks) Do investment ratios have any limitations? (2 marks)
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