You purchased 2,000 shares in Black Plc on 14/07/20 for 249p per share. On the 1 st
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Question:
- You purchased 2,000 shares in Black Plc on 14/07/20 for 249p per share. On the 1st October each year Black Plc pays a dividend of 21p per share. On 01/07/22 the current market price is 267p per share. Black Plc has 25,000,000 shares issued and had net profit of 9,000,000 in the most recent financial year.
- 1. Calculate your holding period return to date and the dividend yield on this investment.
- 2. Calculate the EPS and PE ratios for Black Plc.
- 3. Explain the differences between dividend yield, EPS and PE ratios, highlighting the information each ratio provides for investors.
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
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