The Capital of ABC Ltd. consists of 9% Preference Shares of 10 each, 3,00,000, Equity Shares of 10 each, 8,00,000. The profit after tax is 2,70,000. Equity Dividend is 20% and market price of Equity Shares 40. You are required to calculate following ratios and comment on them, (a) Dividend Yield, (b) Preference & Equity Dividend Cover, (c) Earnings per Share and (d) Price-Earnings Ratio.
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