The following information relates to A Ltd and B Ltd. Two companies that operate in the same industry and listed on the stock markets. All figures are in Ghana Cedis. Account Summarized Profit and Loss A. Ltd. B Ltd Operating profit 80,000 80,000 Interest paid 40,000 10,000 Profit after interest 40,000 70,000 Dividend paid 25,000 20,000 Retained Profit 15,000 50,000 Summarized Balance Sheet A Ltd. B Ltd. Total Assets less Current liabilities 600,000 600,000 Financed by: Ghc 1.00 Ordinary shares 100,000 100,000 Reserves 100,000 400,000 10% Unsecured Loan stock 400,000 100,000 600,000 600,000 The market price of A Ltd. Shares is Gh¢3.50 and that of B Ltd is Gh¢4.90. The 10% unsecured loan stock for both companies is currently quoted at par. Required: For each company calculate the following variables and using them company the performance of the two companies EPS P/E Ratio Times Interest Earned Dividend yield Dividend cover Net Asset per share
The following information relates to A Ltd and B Ltd. Two companies that operate in the same industry and listed on the stock markets. All figures are in Ghana Cedis.
|
Account |
Summarized |
|
|
|
A. Ltd. |
B Ltd |
|
Operating profit |
80,000 |
80,000 |
|
Interest paid |
40,000 |
10,000 |
|
Profit after interest |
40,000 |
70,000 |
|
Dividend paid |
25,000 |
20,000 |
|
Retained Profit |
15,000 |
50,000 |
|
Summarized |
||
|
|
A Ltd. |
B Ltd. |
|
Total Assets less Current liabilities |
600,000 |
600,000 |
|
Financed by: |
|
|
|
Ghc 1.00 Ordinary shares |
100,000 |
100,000 |
|
Reserves |
100,000 |
400,000 |
|
10% Unsecured Loan stock |
400,000 |
100,000 |
|
|
600,000 |
600,000 |
The market price of A Ltd. Shares is Gh¢3.50 and that of B Ltd is Gh¢4.90. The 10% unsecured loan stock for both companies is currently quoted at par.
Required:
For each company calculate the following variables and using them company the performance of the two companies
- EPS
- P/E Ratio
- Times Interest Earned
- Dividend yield
- Dividend cover
- Net Asset per share
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