Question
The following information relates to ABC Ltd., for the year ended 31 st December, 2019. Sales.. Rs.2,000,000. EBID . 40% of sales. Ordinary Shares capital
The following information relates to ABC Ltd., for the year ended 31st December, 2019.
Sales.. Rs.2,000,000.
EBID . 40% of sales.
Ordinary Shares capital of par value Rs.10/each Rs.800,000.
8% Preference shares Capital of par value Rs.100/ each. Rs.500,000.
10% Bonds payable of par value Rs.1000/each. Rs.400,000.
Reserves and surplusRs.250,000.
Current liabilities..Rs.250,000.
Tax rate is 30%.
Market price of share is Rs.20 each.
Dividend payout ratio is 60%.
Required; Compute and comments on each of the following ratios
a)Earning per share. b) Dividend per share.
c)Price earning ration. d) Earning yield ratio.
e)Dividend yield ratio. f) Return on assets.
g)Return on Equity. h) Capital/Assets turn over.
i) Equity multiplier. J) Debt ratio
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