Ratio Illustration 8

Compute following ratios and comment briefly on each one of them:

(i)     Dividend yield.

(ii)   Preference and equity dividend cover.

(iii) EPS.

(iv) P/E Ratio.

The capital of SRK Ltd. Consists of:

10% Preference Shares ( 10/- each)  30,00,000

Equity shares ( 10/- each)                             10,00,000

15% debentures                                              10,00,000

Net profit before tax (Tax rate is 40%)             8,00,000

Dividend Rate                                                         15%