Question 3 (Marks: 15) You are an analyst on the investment team for Retire-Safe Ltd and have been requested by your team leader to analyse the following two companies which your leader is considering investing clients funds in: Q.3.1 Q.3.2 REQUIRED: Show all workings and round off all calculations to two (2) decimal places. 22 Q.3.3 DETAILS Annual earnings for the year No of ordinary shares in issue Current share price Dividend payout ratio Dividend yield O The Independent Institute of Education (Pty) Ltd 2022 Q.3.4 Q.3.5 COMPANY S R75 000 000 1 500 000 R400 20% Calculate the Price-Earnings ratio for Company S. Calculate the dividend yield for Company S. COMPANY T R60 000 000 3 000 000 R180 ? Assuming that Company S has a dividend payout ratio of 20%, calculate the dividend per share. 5% If Company T has a dividend yield of 5%, calculate the dividend pay-out ratio of Company T. Describe any market where Retire-Safe can purchase shares in either of the above companies. (3) (2) Page 6 of 11 2022 (2) (6) (2)

Question 3 (Marks: 15) You are an analyst on the investment team for Retire-Sufe Ltd and have been requested by your team leader to analyse the following two companies which vour leader is considering investing clients funds in: REQUIRED: Show all workings and round off all calculations to two (2) decimal places. Q.3.1 Calculate the Price-Earnings ratio for Company 5. (3) Q.3.2 Assuming that Company 5 has a dividend payout ratio of 20%, calculate the (2) dividend per share. O The independent inctitute of Fducrtion (p)y thd sozz Page 6 ar 11 n 2002 Q.3.3 Calculate the dividend yield for Company S. (2) Q.3.4 If Company Thas a dividend yield of 5%, calculate the dividend pay-out ratio of (6) Company T. Q.3.5 Describe any market where Retire-Safe can purchase shares in either of the (2) above companies