U1 Booklet 4 Business Analysis Solutions 2026.xlsx - 01.92

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1.92 Unnamed: 1 Unnamed: 2 Unnamed: 3 SOLUTION
Rocco Stewart PLC
Dividend Yield = Ordinary Dividend per Share
Market Price per Share x 100%
0.15
£2.00 x 100
0.075
Dividend Cover = (Profit for the Year after Tax - Preference Dividends)
Dividends on Ordinary Shares
£60,000 - £3000
30000
1.9 times
Interest Cover = Profit for the Year before Interest and Tax
Interest
£60000 + £3200 + £20000
3200
83200
3200
26 times
Earnings per Share = (Profit for the Year after Tax - Preference Dividends)
Number of Ordinary Shares
£60000 - £3000
200000
0.285
Price Earning Ratio = Market Price per Share
Earnings per Share
2
0.285
6.9 times
Equity Gearing Ratio = (Preference Shares + Long-Term Loans : Orindary Shares)
(£50000 + £40000 : £200000)
0.45 : 1