Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following information has been extracted from the published accounts of Pesa Corporation Limited, a company quoted on the Nairobi Stock Exchange.                                                                                                                                                Shs. Net profit after tax and interest                                                                          990,000 Less: dividends for the period                                                                             740,000 Transfer to reserves                                                                                             250,000 Accumulated reserves brought forward                                                              810,000 Reserves carried forward                                                                                    1,060,000 Share capital (Sh.10 par valu             Sh.8,000,000 Market price per share now                    12%   Required Calculate for Pesa Corposation Limited the following ratios and indicate the importance of each Earnings per share, Price earnings ratio, Dividend yield,  Dividend cover Book Value per share

The following information has been extracted from the published accounts of Pesa Corporation Limited, a company quoted on the Nairobi Stock Exchange.                                                                                                                                                Shs. Net profit after tax and interest                                                                          990,000 Less: dividends for the period                                                                             740,000 Transfer to reserves                                                                                             250,000 Accumulated reserves brought forward                                                              810,000 Reserves carried forward                                                                                    1,060,000 Share capital (Sh.10 par valu             Sh.8,000,000 Market price per share now                    12%   Required Calculate for Pesa Corposation Limited the following ratios and indicate the importance of each Earnings per share, Price earnings ratio, Dividend yield,  Dividend cover Book Value per share

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

The following information has been extracted from the published accounts of Pesa Corporation Limited, a company quoted on the Nairobi Stock Exchange.
       

                                                                                                                                       Shs.

  1. Net profit after tax and interest                                                                          990,000
  2. Less: dividends for the period                                                                             740,000
  3. Transfer to reserves                                                                                             250,000
  4. Accumulated reserves brought forward                                                              810,000
  5. Reserves carried forward                                                                                    1,060,000
  6. Share capital (Sh.10 par valu             Sh.8,000,000
  7. Market price per share now                    12%

 

Required
Calculate for Pesa Corposation Limited the following ratios and indicate the importance of each

  1. Earnings per share,
  2. Price earnings ratio,
  3. Dividend yield,
  4.  Dividend cover
  5. Book Value per share
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Dividends
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS