Kaido Plc Statement of changes in equity extract for the year ended 31 December 2020 Revaluation Retained Attributable to the owners of Kaido plc surplus earnings £m £m Balance brought forward – 800.00 Total comprehensive income for the year 350.00 222.90 Transfer between reserves (17.50) 17.50 Dividends on ordinary shares – (81.75) Balance carried forward 332.50 958.65 As well as revaluing property, plant and equipment during the year (incurring significant additional depreciation charges) Kaido plc also incurred £40 million of costs relating to the closure of a division. Kaido plc has £272.5 million of 50p ordinary shares in issue. The market price per share is 586p. Requirement Explain the following financial ratios referring to Kaido plc and relate them to the above information. (15 Marks) (a) Dividend per share = 15p (b) Earnings per share = Profit before ordinary dividends = 222.90 = 40.9p No of ordinary shares in issue 545.00 (c) Dividend cover = EPS = 40.90 = 2.7 Dividend per share 15.00 (d) Dividend yield = Dividend per share = 15.00 = 0.03 Current market price per share 586.00 (e) Price/earnings ratio = Current market price per share = 586.00 = 14.3 EPS 40.90
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<table><tbody><tr class="firstRow"><td width="176" valign="top" style="word-break: break-all;">attributable to owner </td><td width="176" valign="top" style="word-break: break-all;">revaluation surplus £m</td><td width="176" valign="top" style="word-break: break-all;">retained earnings£ m</td></tr><tr><td width="176" valign="top" style="word-break: break-all;">balanced brought forward</td><td width="176" valign="top" style="word-break: break-all;">-</td><td width="176" valign="top" style="word-break: break-all;">800.00</td></tr><tr><td width="176" valign="top" style="word-break: break-all;">Total comprehensive income for the yea</td><td width="176" valign="top" style="word-break: break-all;">350</td><td width="176" valign="top" style="word-break: break-all;">222.90</td></tr><tr><td width="176" valign="top" style="word-break: break-all;">Transfer between reserves</td><td width="176" valign="top" style="word-break: break-all;">(17.50)</td><td width="176" valign="top" style="word-break: break-all;">17.50</td></tr><tr><td width="176" valign="top" style="word-break: break-all;">Dividends on ordinary shares</td><td width="176" valign="top" style="word-break: break-all;">-</td><td width="176" valign="top" style="word-break: break-all;">(81.75)<br/></td></tr><tr><td...
The following information relates to two companies for the year to 31 March 20x5. Income statement (extracts) Laurel plc Hardy plc £000 £000 Trading profit before interest 350 600 Interest payable 100 0 Profit before tax 250 600 Taxation 100 220 Profit for the period 150 380 Proposed dividend per ordinary share 50p 45p Market price per ordinary share at 31 March 20x5 £3.70 £20.10 Balance sheets (extracts) Laurel plc Hardy plc £000 £000 Equity Ordinary shares (£1.00 each) 200...
The following information relates to two companies for the year to 31 March 20x5. Income statement (extracts) Laurel plc Hardy plc £000 £000 Trading profit before interest 350 600 Interest payable 100 0 Profit before tax 250 600 Taxation 100 220 Profit for the period 150 380 Proposed dividend per ordinary share 50p 45p Market price per ordinary share at 31 March 20x5 £3.70 £20.10 Balance sheets (extracts) Laurel plc Hardy plc £000 £000 Equity Ordinary shares (£1.00 each) 200...
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