Question
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:
- The dividends cover of Vonoko Limited.
- The Earnings Yield for Vonoko Limited.
- The Price Earnings ratio of Vonoko Limited.
- The possible Market price per share of Paradise Limited.
- The valuation of Paradise Limited
.
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