Specific Topic is on FINANCIAL STATEMENT ANALYSIS

9: Basic growth ratio-1. Consider the following data for the year ended December 31. 2012: R. Co. J Co. Earnings per share P 50 P 200 Market price per ordinary share 150 500 Dividend per ordinary share 40 120 Dividend per preference share 10' 20 Total shareholders' equity P10 million P60 million Ordinary shares outstanding 1 million 4 million Preference shares outstanding 500,000 2 million cumulative Preference shares liquidation P1.30 per share P1:30 per share value Required: Calculate the following ratios for-R Co. and J Co.: a. Price-earnings rate b. "Dividend payout rate. C. Dividend yield rate d. Book value per preference share e. Market to book value per share 10. Basic growth ratio-2. Find the missing data. a b C i P/O rate ? 40% ? P/E rate 8 40% Yield rate 12% 80% ? Retention rate ? 25% Required: Compute the unknown value in each of the independent cases. a. Payout ratio and retention rate Hint: b. Price-earnings ratio and retention rate P/O rate = P/E Rate x Yield Rate c. Payout rate and yield rate Retention Rate = 100% - P/O Rate