M/s. Green a Blue Ltd. has presented its financial information for year 2010 as follows:
Balance Sheet on 31st March, 2010
| Liabilities | Amount
|
Assets | Amount
|
| Share Capital | 12,00,000 | Fixed Assets | 28,60,000 |
| Reserves and Surplus | 8,00,000 | Stock in Hand | 19,80,000 |
| Long-term Debt | 22,70,000 | Sundry Debtors | 16,50,000 |
| Current Liabilities | 23,50,000 | Cash and Bank Balance | 1,30,000 |
| Total | 66,20,000 | Total | 66,20,000 |
Income Statement for the ended 31st March, 2010
| Amount | |
| Net Sales | 1,02,00,000 |
| Cost of Goods Sold | 79,20,000 |
| Selling and Administrative Expenses | 15,45,600 |
| Net Profit | 7,34,400 |
(1) Tax Rate is 30%. Company’s Capital is, divided in 1,20,000 shares of 10 each
(2) Company has declared dividend @ 25%
(3) Market Price of the share is 50
You are required to evaluate investment in company on the basis of:
(i) Dividend Yield.
(ii) EPS.
(iii) P/E ratio.
(iv) ROCE
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