Following information is available relating to A Ltd. and B Ltd.
| Particulars | A Ltd.
( in Lakhs) |
B Ltd.
( in Lakhs) |
| Equity Share Capital ( 10) | 200 | 250 |
| 10% Preference Share Capital | 80 | 100 |
| 15% Debentures | 20 | 60 |
| Profit before Interest and Taxes | 60 | 80 |
| Proposed Dividend | 20 | 25 |
| Provision for tax | 17 | 21 |
| Market Price per share | 50 | 60 |
You are required to calculate: (i) EPS, (ii) P/E Ratio, (iii) Dividend Payout Ratio, (iv) Dividend yield and advise which company’s share is worth investing.
11 Comments