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You are a trainee accountant in practice. You are a traince accountant in practice. You are assisting your manager in addressing several outstanding issues on
You are a trainee accountant in practice.
You are a traince accountant in practice. You are assisting your manager in addressing several outstanding issues on bchalf of two clients. Each client has a 31 December yeur-cnd. Your manager bhas sent you the following details in relation to cach client: Client 11 The issued share capital of Berry pk ("Berry") consists of 1,000,000 ordinary shares of 00.50 cach and 250,000 6% preference shares of El cach. In the year to 31 December 2020, the company's profit after tax was 90,000. Dividends paid during the year comprised the preference dividends for the year and an ordinary dividend of 55,000. The market price of the company's ordinary shares on 31 December 2020 was 70 cent per share. REQUIRED: Calculate the following ratios for Berry and explain what is meant by cach of the ratios 1. Earnings per Share; 2. Dividend Cover, and 3. Dividend Yield.
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