We are comparing two companies that are listed on ASX and which have the the following details

Bells Limited

* Profit after tax of $50 million for the last financial report

* Pays $4 million in preference share dividends (the preference share are classed as equity)

* Had 20 million ordinary shares on issue for the first nine months of the year and 25 million ordinary shares on issue for the last three months of the year

* The dividend paid for the year on its ordinary shares is $1.00 per share

* The latest share price was $16.

Southside Ltd

*Profit after tax of $100 million for the last financial period

* Pays $8 million in preference share dividends (the preference shares are classed as debt)

* Had 60 million shares on issue for the full year

* The dividend paid for the year on ordinary shares is $0.95 per share

*The latest share price was $49.

REQUIRE

A) Calculate basic EPS, price earning ratio and dividend payout ratio for each of the companies.

B) Compare the calculations made for each company.