The following data is taken from Purnama's financial statements for 2011 and 2012. Financial year ended...

 

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The following data is taken from Purnama's financial statements for 2011 and 2012. Financial year ended Ordinary share capital (200,000 ordinary shares at RM1 each) Share premium Retained profits b/f Retained earnings for the year Dividend per share (RM) Market price per share at the end of the year (RM) Required: a. Calculate for each year: 31 December 2011 (RM) 200,000 (RM) 432,000 80,000 OEMBOE 128,000 512,000 512,000 112,000 840,000 i. Earnings per share (EPS) ii. Price-earnings ratio (P/E) iii. Dividend payout ratio b. Explain the uses of P/E ratio. What does a high P/E ratio indicate? 31 December 2012 (RM) (RM) 200,000 0.30 6.30 128,000 624,000 952,000 0.34 7.56 The following data is taken from Purnama's financial statements for 2011 and 2012. Financial year ended Ordinary share capital (200,000 ordinary shares at RM1 each) Share premium Retained profits b/f Retained earnings for the year Dividend per share (RM) Market price per share at the end of the year (RM) Required: a. Calculate for each year: 31 December 2011 (RM) 200,000 (RM) 432,000 80,000 OEMBOE 128,000 512,000 512,000 112,000 840,000 i. Earnings per share (EPS) ii. Price-earnings ratio (P/E) iii. Dividend payout ratio b. Explain the uses of P/E ratio. What does a high P/E ratio indicate? 31 December 2012 (RM) (RM) 200,000 0.30 6.30 128,000 624,000 952,000 0.34 7.56

Answer rating: 100% (QA)

a Calculation of Financial Ratios Year 2011 Earnings per Share EPS Retained Earnings for the Year Number of Ordinary Shares EPS RM112000 200000 RM056 ... View the full answer