As a financial manager you are very concerned about the dividend yiled and dividend payout ratioas these will be your indicator of return on your investments Q.1.1 Calculate the dividend yiled for both companies Q.1.2. Calculatet the dividend payout ratio for Pink limited Q.1.3.Calculate the price earning ratio for Purple Limited
As a financial manager you are very concerned about the dividend yiled and dividend payout ratioas these will be your indicator of return on your investments Q.1.1 Calculate the dividend yiled for both companies Q.1.2. Calculatet the dividend payout ratio for Pink limited Q.1.3.Calculate the price earning ratio for Purple Limited
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Hi there can you please assist on the following question below
You are the financilal manager of competitive investment company in south africa. you have been presented with two possible investments: Pink limited and purple limited as shown below. you have been supplied with the following information regarding the two companies
| Pink Limited | Purple Limited | |
| Earnings before interest and tax | R 3 000 000 | R 4 000 000 |
| Long term interestbearing debt | R 500 000 | R 800 000 |
| Earnings attribute to shareholders | R 2 124 000 | R2 822 400 |
| Tax rate | 28% | 28% |
| Share capital | R 2 00 000 | R 5000 000 |
| Number of ordinary shares issued | 200 000 | 400 000 |
| Number of ordinary shares authorised | 1 000 000 | 500 000 |
| Current market price of the share | R 30 | R 20 |
| Dividend per share | R 5 | R 3 |
As a
Q.1.1 Calculate the dividend yiled for both companies
Q.1.2. Calculatet the dividend payout ratio for Pink limited
Q.1.3.Calculate the price earning ratio for Purple Limited
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