Forums › Ask CIMA Tutor Forums › Ask CIMA F3 Tutor Forums › Dividend yield using pre year end share price
- This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
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- November 9, 2018 at 2:53 pm #484294
Hi
I am trying to calculate the dividend yield but I have only been given a graph showing the historical movements of the share price from 30th September 2013 to 30th September 2017 and financial statements for the years ending 31st December 2016 and 31st December 2017 (profit and loss, balance sheet and statement of changes in equity 16-17).
Will I have to do some sort of pro rated calculation or is not worth doing this calculation unless the exact figures are given?
I am unable to calculate the remaining investor ratios as I have not been given the number of shares in issue only the book value of the share capital so won’t be able to calculate the EPS which is pretty much the root from which they can all be derived. Please can you suggest any alternative ways of calculating the remaining investor ratios namely:
EPS
P/E
Earnings yield
(I have calculated dividend cover and dividend payout)Thanks in advance
Khurram
January 1, 2019 at 7:29 pm #499613Hi,
The dividend yield uses the share price at the start of the year, so you need to find that for each year from the graphs.
To get the figure for the number of shares then you need to use the book value of the shares and their par value from the SFP to get this figure.
Thanks
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