The following information is available in respect of two listed companies namely Jay Ltd. and Vijay Ltd.
| Particulars | Jay Ltd. | Vijay Ltd. |
| Equity Share Capital ( 10 each)
12% Pref. Shares Capital Profit before Tax Rate of Taxation Dividend per Share Market Price per share |
800 Lacs
100 Lacs 400 Lacs 30% 3 150 |
1,000 Lacs
200 Lacs 600 Lacs 30% 2 120 |
You are required to calculate:
(a) Earning Per Share (c) Dividend Payout Ratio
(b) P/E Ratio (d) Return on Total Capital
Also advice as to which company should be preferred for investing in.
(MU, BMS, Apr. 2011)
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