Sarah and Kate are considering investing some of their savings in Falcan Leisure, a theme park....
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Sarah and Kate are considering investing some of their savings in Falcan Leisure, a theme park. Their aim is to achieve capital growth on their investment, coupled with some income. They are considering purchasing shares in Falcon Leisure and have cut out a copy of the current year's figures on financial performance from the newspaper. They have asked you to advise them about the meaning of the terms used in the advertisement and whether or not Falcon Leisure is likely to be a good investment for their earnings. Extract from comments by Lady Margaret Jamieson, in the Directors' Report Your company goes from strength to strength as profits and earnings continue to grow. Falcon Leisure: financial Performance Year 3 Year 2 Year 1 Earnings per share 31p 27p 24p Dividend yield 7p 6.2p 5.3p Return on capital employed 39p 34p 28p Dividend cover 2:1 2.5:1 3:1 Gross profit margin 16% 17% 15% 6% 6.5% 6% Net profit margin Gearing ratio 1.7:1 1.4:1 1:1 Sarah and Kate are considering investing some of their savings in Falcan Leisure, a theme park. Their aim is to achieve capital growth on their investment, coupled with some income. They are considering purchasing shares in Falcon Leisure and have cut out a copy of the current year's figures on financial performance from the newspaper. They have asked you to advise them about the meaning of the terms used in the advertisement and whether or not Falcon Leisure is likely to be a good investment for their earnings. Extract from comments by Lady Margaret Jamieson, in the Directors' Report Your company goes from strength to strength as profits and earnings continue to grow. Falcon Leisure: financial Performance Year 3 Year 2 Year 1 Earnings per share 31p 27p 24p Dividend yield 7p 6.2p 5.3p Return on capital employed 39p 34p 28p Dividend cover 2:1 2.5:1 3:1 Gross profit margin 16% 17% 15% 6% 6.5% 6% Net profit margin Gearing ratio 1.7:1 1.4:1 1:1
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T he meaning of the terms used in the advertisement The terms used in the advertisement refer to different aspects of the financial performance of the ... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
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