Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You were approached by a shareholder in Ecuna Ltd to comment on the investment that he has made in the company two years ago. REQUIRED
You were approached by a shareholder in Ecuna Ltd to comment on the investment that he has made in the company two years ago. REQUIRED a. Calculate the ratios listed below of Ecuna Ltd for the financial year ended 28 February 20.19. - Dividends per share - Return on investment - Return on equity - Price/Earnings ratio - Solvency ratio - Debt-to-Equity ratio b. Comment on the returns and risks related to the shareholders' investment in Ecuna Ltd. INFORMATION The following financial statement information was provided to you: Ecuna Ltd Exctract from the statement of profit or loss and other comprehensive income for the year ended 28 February 20.19 Profit for the year was calculated after taking non-cash expenses of R74 750 into consideration. 'The 300000 ordinary shares had a market price per share during the 20.19 financial year of R20,75. A dividend of R1 650000 was declared to all ordinary shareholders registered on 1 February 20.19
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started