The following information relates to the operations of Branded Ltd. The profit was $1 500 000. The

Question:

The following information relates to the operations of Branded Ltd. The profit was $1 500 000. The company distributed preference dividends of $50 000, and ordinary dividends of $600 000. Over the year, issued ordinary shares were 2 000 000. Ordinary shares are currently selling for $8.00 per share.

Required

Calculate the following ratios:

1. Earnings per share

2. Price–earnings ratio

3. Dividend yield

4. Dividend payout.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

Fantastic news! We've Found the answer you've been seeking!