ACCA December Exams

Post comments & Vote in Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>

MCQ QUESTION WORKING

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
May 27, 2015 at 8:26 am #249457
ritesh1990
Participant
- Topics: 2
- Replies: 3
X PLC HAS DIVIDEND YIELD OF 8% AND DIVIDEND COVER OF 2.4
WHAT IS PER RATIO FOR X PLC?
May 27, 2015 at 9:19 am #249492
John Moffat
Keymaster
- Topics: 57
- Replies: 54500
Please do not write in capital letters.
Divi yield = divi / MV; so MV = divi / divi yield
Divi cover = EPS / divi; so EPS = divi x divi cover
PE ratio = MV / EPS = (divi / divi yield) / (divi x divi cover)
= (1/divi yield) / divi cover
= (1/0.08) / 2.4 = 5.21
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.