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% |
- Calculate the shareholders ratios for the above firm.
- 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 |
|---|---|
| Ordinary dividends | $230,000 |
| Number of ordinary share issued | 2,500,000 |
| Market price of share | $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 |
|---|---|
| Ordinary dividends | $1,850,000 |
| Number of ordinary share issued | 5,000,000 |
| Market price of share | $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 |
|---|---|
| Ordinary dividends | $333,451 |
| Number of ordinary share issued | 1,500,000 |
| Market price of share | $4.40 |
