Pharoah Limited is a Niagara-on-the-Lake, Ontario-based winery producing blended, premium, and ultra-premium wines, which a sold globally. The company has a strong distribution network in Canada through independent retail locations. The following information has been extracted from the company's annual report. 2024 2023 2022 Market price per share $12.10 $7.56 $5.35 Earnings per share $0.66 $0.47 $0.34 Dividends per share $0.163 $0.140 $0.140 Net income (in thousands) $21,572 $15,506 $12,076 Shareholders' equity (in thousands) $178,420 $157,871 $148,463 (a) Your answer is correct. Calculate Pharoah's price/earnings ratio from 2022 through 2024. (Round answers to 1 decimal place, e.g. 15.2.) Price/earnings ratio 2024 18.3 2023 16.1 2022 15.7 Comment on whether the ratio's trend over this period reflects a company with higher growth potential or one that has achieved maturity. The trend reflects that the company has the potential for further growth V (b) eTextbook and Media Attempts: 1 of 3 use
Pharoah Limited is a Niagara-on-the-Lake, Ontario-based winery producing blended, premium, and ultra-premium wines, which a sold globally. The company has a strong distribution network in Canada through independent retail locations. The following information has been extracted from the company's annual report. 2024 2023 2022 Market price per share $12.10 $7.56 $5.35 Earnings per share $0.66 $0.47 $0.34 Dividends per share $0.163 $0.140 $0.140 Net income (in thousands) $21,572 $15,506 $12,076 Shareholders' equity (in thousands) $178,420 $157,871 $148,463 (a) Your answer is correct. Calculate Pharoah's price/earnings ratio from 2022 through 2024. (Round answers to 1 decimal place, e.g. 15.2.) Price/earnings ratio 2024 18.3 2023 16.1 2022 15.7 Comment on whether the ratio's trend over this period reflects a company with higher growth potential or one that has achieved maturity. The trend reflects that the company has the potential for further growth V (b) eTextbook and Media Attempts: 1 of 3 use
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pharoah Limited is a Niagara-on-the-Lake, Ontario-based winery producing blended, premium, and ultra-premium wines, which are
sold globally. The company has a strong distribution network in Canada through independent retail locations. The following
information has been extracted from the company's annual report.
2024
2023
2022
Market price per share
$12.10
$7.56
$5.35
Earnings per share
$0.66
$0.47
$0.34
Dividends per share
$0.163
$0.140
$0.140
Net income (in thousands)
$21,572
$15,506
$12,076
Shareholders' equity (in thousands) $178,420 $157,871 $148,463
(a)
Your answer is correct.
Calculate Pharoah's price/earnings ratio from 2022 through 2024. (Round answers to 1 decimal place, e.g. 15.2.)
Price/earnings ratio
2024
18.3
2023
16.1
2022
15.7
Comment on whether the ratio's trend over this period reflects a company with higher growth potential or one that has achieved
maturity.
The trend reflects that the company has the potential for further growth V
eTextbook and Media
(b)
Attempts: 1 of 3 used
Calculate Pharoah's dividend payout ratio and dividend yield for 2022 through 2024. (Round answers to 1 decimal place, e.g. 15.2%.)
Dividend payout ratio
Dividend yield
2024
%
%
2023
%
%
2022
%
%
What do the results of these ratios tell us about Pharoah Ltd.?
The company is paying out a
percentage of their earnings as dividends.
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