You are the accountant for Yau Tong Marketing plc and have to report on the financial statements of the company to the Board of Directors meeting.

Information concerning the performance of the company for the financial year ended 31 December 2024 is as follows:

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(a) Calculate, for the year ended 31 December 2024, the:
(i) return on capital employed (ii) earnings per ordinary share (iii) dividend per share (iv) dividend cover (v) price/earnings ratio (vi) dividend yield.
At a Board meeting, the Chief Executive stated, "Last year, the dividend per share was 2.5 pence per share. It is important that the dividend per share increases every year".

(b) Evaluate the statement made by the Chief Executive.

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Issued share capital Profit for the year before tax Tax on profit for the year 8% loan notes 2029 Reserves Interim ordinary dividend paid for year Final ordinary dividend paid for year Market price per share 8 million 0.75 Ordinary shares 4 million 6% Redeemable preference shares of 0.50 412,000 92,000 1,200,000 800,000 40,000 140,000 0.90