Following information is available relating to Beena Ltd. and Meena Ltd:
( in lacs)
| Beena Ltd. | Meena Ltd. | |
| Equity share capital ( 10) | 200 | 250 |
| 12% preference shares | 80 | 100 |
| Profit after tax | 50 | 70 |
| Proposed dividend | 35 | 40 |
| Market price per share | 25 | 35 |
You are required to calculate: (i) Earning per share. (ii) P/E Ratio (iii) Dividend Payout Ratio. (iv) Return on Equity Shares. As an analyst, advice the investor which of the two companies is worth investing.
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