(b) Pharmaniaga Berhad share has growth thoroughly in the market during pandemic last year. The share price has risen from RM45 to RM70 per share. The firm's current statement of shareholders' equity as follows: Preferred share Common share (RM1.60 par) Paid-in capital in excess of par Retained earnings Total shareholders' equity RM1,250,000 RM4,000,000 RM1,500,000 RM4,500,000 RM11,250,000 The firm is planning to pay dividends of RM1,600,000 and the net income is RM3,600,000. The share price of the firm should sell is RM70 after the ex-dividend date. If instead of paying a dividend, management decides to repurchase share. Based on the information above, compute the firm's earning per price (EPS), price per earnings (P/E) ratio and firms' new market price in order of making the proposed cash dividend payment.
(b) Pharmaniaga Berhad share has growth thoroughly in the market during pandemic last year. The share price has risen from RM45 to RM70 per share. The firm's current statement of shareholders' equity as follows: Preferred share Common share (RM1.60 par) Paid-in capital in excess of par Retained earnings Total shareholders' equity RM1,250,000 RM4,000,000 RM1,500,000 RM4,500,000 RM11,250,000 The firm is planning to pay dividends of RM1,600,000 and the net income is RM3,600,000. The share price of the firm should sell is RM70 after the ex-dividend date. If instead of paying a dividend, management decides to repurchase share. Based on the information above, compute the firm's earning per price (EPS), price per earnings (P/E) ratio and firms' new market price in order of making the proposed cash dividend payment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pharmaniaga Berhad share has growth thoroughly in the market during pandemic last year.
The share price has risen from RM45 to RM70 per share. The firm's current statement of
shareholders' equity as follows:
(b)
Preferred share
Common share (RM1.60 par)
Paid-in capital in excess of par
Retained earnings
Total shareholders' equity
RM1,250,000
RM4,000,000
RM1,500,000
RM4,500,000
RM11,250,000
The firm is planning to pay dividends of RM1,600,000 and the net income is RM3,600,000. The
share price of the firm should sell is RM70 after the ex-dividend date. If instead of paying a dividend,
management decides to repurchase share.
Based on the information above, compute the firm's earning per price (EPS), price per earnings
(P/E) ratio and firms' new market price in order of making the proposed cash dividend payment.
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