The following information has been extracted from the published accounts of Pesa Corporation Limited, a company quoted on the Nairobi Stock Exchange.                                                                                                                                                Shs. Net profit after tax and interest                                                                          990,000 Less: dividends for the period                                                                             740,000 Transfer to reserves                                                                                             250,000 Accumulated reserves brought forward                                                              810,000 Reserves carried forward                                                                                    1,060,000 Share capital (Sh.10 par valu             Sh.8,000,000 Market price per share now                    12%   Required Calculate for Pesa Corposation Limited the following ratios and indicate the importance of each Earnings per share, Price earnings ratio, Dividend yield,  Dividend cover Book Value per share

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Chapter15: Financial Statement Analysis
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The following information has been extracted from the published accounts of Pesa Corporation Limited, a company quoted on the Nairobi Stock Exchange.
       

                                                                                                                                       Shs.

  1. Net profit after tax and interest                                                                          990,000
  2. Less: dividends for the period                                                                             740,000
  3. Transfer to reserves                                                                                             250,000
  4. Accumulated reserves brought forward                                                              810,000
  5. Reserves carried forward                                                                                    1,060,000
  6. Share capital (Sh.10 par valu             Sh.8,000,000
  7. Market price per share now                    12%

 

Required
Calculate for Pesa Corposation Limited the following ratios and indicate the importance of each

  1. Earnings per share,
  2. Price earnings ratio,
  3. Dividend yield,
  4.  Dividend cover
  5. Book Value per share
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