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The following particulars relate to extracts from the annual financial statements of Vonoko Limited, a quoted company, for the year ended 31 December 2021: Share
The following particulars relate to extracts from the annual financial statements of Vonoko Limited, a quoted company, for the year ended 31 December 2021: Share capital: Authorized: 1,050,000 Ordinary Shares of Shs.20= each. Issued and fully paid: 525,000 Ordinary Shares of Shs. 20= each. Profit before taxation 15,750,000.00 Taxation 7,087,500.00 Profit after taxation 8.662,500.00 First and final dividends for 2021 3.465,000.00 Retained profits 5,197,500.00 The market price of ordinary shares of Vonoko Ltd is Shs. 95/= per share. In the same year Paradise Limited, an unquoted company in the same sector had a net Profit after tax of Shs. 2,625,000/= and 875,000 Ordinary shares issued and fully paid. Required: (1) The dividends cover of Vonoko Limited. (ii) The Earnings Yield for Vonoko Limited. (iii) The Price Earings ratio of Vonoko Limited. (iv)The possible Market price per share of Paradise Limited. (v) The valuation of Paradise Limited
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