a. Following information is available in respect of a company named, as Beta Ltd
Particulars Amount
Profit before taxes Rs 50 lakhs
Dividend declared per share Rs2
Price of the share prevalent on stock
exchange Rs 200
Applicable tax rate 35%
Share capital of company 5 lakh shares
of Rs 10 each
Calculate-
Earnings per share
Dividend Pay-out Ratio
Price Earning Ratio
Answers
Answered by
0
Answer:
Earnings per share = 6.5
Dividend Pay-out Ratio = 0.31
Price Earning Ratio = 30.77
Explanation:
As per given information,
Profit before taxes = 50 lakhs
Share capital = 5 lakhs
Divident / share = 2
Price of the share = 200
Now solving each one by one;
Earnings per share = Profit/Share capital,
EPS = 50 × (1−0.35) /5 = 6.5.
Dividend Pay-out Ratio = Dividend per share/Earnings per share,
DP ratio = 2/6.5 = 0.31.
Price earnings ratio = Price per share/Earnings per share,
Price Earning ratio = 200/6.5 = 30.77.
SImilar question can be found on;
https://brainly.in/question/13858717
Similar questions