 ## Shareholder ratios - numerical questions  #### Question 1

Bodgers Engineering plc have been listed on the Stock Exchange for a number of years. The following is an extract from their accounts, with additional information

Year 2005 2006 2007 2008 2009 2010 2011
Share price (\$) 1.27 1.38 1.24 1.03 1.35 1.75 1.25
Dividend (p/share) 10 12 14 14 14 15 16
Stock Market indices 4000 4500 5000 6000 5,000 3,800 4,000
Interest rate 8% 10% 8% 7% 5% 4% 3.5%

1. Calculate the shareholders ratios for the above firm.
2. Using all the data above, comment on your findings.

#### Question 2

Heskey plc has an ordinary share capital of 500,000 \$1 shares. Below is a profit and loss account extract taken from the annual report. The market price of the share on 31 December 2011 was \$1.85.

Heskey plc - profit and loss account (extract) for the year ended 31 Dec 2011

\$ \$
Profit after taxation 105,000
Less:
Transfers to reserves 15,000
Dividends 55,000 70,000
Profit c/f 35,000

From the above profit and loss account extract, calculate the following ratios:

• Earnings per share
• Dividends per share
• Dividend yield

#### Question 3

Owen plc has an ordinary share capital of 1,000,000 50c ordinary shares.

Below is a profit and loss account extract taken from the annual report. The market price of the share on 31 December 2011 was \$0.78.

Owen plc - profit and loss account (extract) for the year ending 31 Dec 2011

\$ \$
Profit after taxation 43,500
Less:
Transfers to reserves 8,000
Dividends 12,000 20,000
Profit c/f 23,500

From the above profit and loss account extract, calculate the following ratios:

• Earnings per share
• Dividends per share
• Dividend yield

#### Question 4

From the following data, calculate the following ratios:

• Earnings per share
• Dividends per share
• Dividend yield
Profit after tax \$550,000 \$230,000 2,500,000 \$2.30

#### Question 5

From the following data, calculate the following ratios:

• Earnings per share
• Dividends per share
• Dividend yield
Profit after tax \$4,600,000 \$1,850,000 5,000,000 \$5.60

#### Question 6

From the following data, calculate the following ratios:

• Earnings per share
• Dividends per share
• Dividend yield
Profit after tax \$459,884 \$333,451 1,500,000 \$4.40 