Question
You are given the following data for 3 companies for the year ended 0th June 2012. Abel Beta Chelsi Number of ordinary shares Number of
You are given the following data for 3 companies for the year ended 0th June 2012.
Abel Beta Chelsi Number of ordinary shares Number of 10% preference shares Number of 12% debentures @ 100 Ordinary Nominal value Market value Preference shares Nominal Market value 12% debentures market Net profit before interest and tax Sh.1,000 40,000 10,000 500,000 Sh. 20 25 10 8 100 400,000 50,000 20,000 100,000 Sh. 10 12 5 6 90 200,000 200,000 30,000 200,000 Sh. 5 8 20 24 110 600,000 Additional information: 1. Corporation tax is at 30. 2. Consider preference dividends were paid and dividends of 10% on ordinary shares were also paid. Required: Compute: i. Dividend cover ii. Dividend payout ratio iii. EPS iv. P/E ratio for each company. Advice potential investors interested in capital gain on which company to invest in.
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