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Financial objectives BPP

CChris5y ago
Magnet plc has objectives to improve EPS and DPS by 10% p.a. Last yr current yr $m. $m PBIT 22,300 23,726 Interest 3,000. 3,000 Tax 5,790 6,218 PAIT 13,510 14,508 Pref Div. 200 200 Divs. 7,986 8,585 R.E. 5,324 5,723 O.Shares 100,000 100,000 (in million) Share price at the end of year $4.70 and $5.16 per share respectively. Question : What is the growth in the dividend per ordinary share ? Answer : 7.5% - Div increased from 8 cents to 8.6 cents , a 7.5% increase I understand dividend per share = annual total dividend paid out / no of ordinary shares... but in this case , I couldn’t apply this to get same result . Could you pls assist? PAIT ( profit after interest and Tax).
John MoffatJohn MoffatTutor5y ago#1
The dividend last year was $7,986 / 100,000 = $0.080 The dividend this year is $8,585 / 100,000 = $0.086 The increase = 6c/80c = 7.5%
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