Ratio Illustration 5


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Veena Ltd. has presented its financial information for the year ended 31st March, 2010:

Earnings before interest and tax  8,00,000
1,00,000 Equity shares of  10 each  10,00,000
10% Debenture  15,00,000
Reserves and surplus  5,00,000
Provision for tax  30%
Proposed dividend 20%
Market price per share 32

Calculate: (1) EPS, (2) P/E ratio, (3) Book value per share and (4) Dividend yield ratio. Advise the investor.


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