Exam 9: Capital Structure and Investment Ratios

Graham plc has the following information for the year to 30 June: Profit for the year : £4.2m Ordinary dividend paid : £1.8m Number of ordinary shares : 18m Market price at 30 June : £2.90 Calculate price to earnings for Graham Plc as at 30 June.

An extract from Alan plc's Statement of financial position as at 30 September 2024 is given below: The gearing proportion at 30 September 2024 was:

Graham plc has the following information for the year to 30 June: Profit for the year : £4.2m Ordinary dividend paid : £1.8m Number of ordinary shares : 18m Market price at 30 June : £2.90 Calculate the dividend cover for Graham plc.

If Sybil Ltd issues shares with a £1 nominal value, for £2 per share, then the gearing proportion and the acid test ratio will be affected as follows:

Two competitor companies, Milly Ltd and Molly Ltd, have the following ratios at 31 December : Which of the following statements are true?

Graham plc has the following information for the year to 30 June: Profit for the year : £4.2 m Ordinary dividend paid : £1.8 m Number of ordinary shares : 18 m Market price at 30 June : £2.90 Calculate the earnings per share for Graham Plc as at 30 June.

Graham plc has the following information for the year to 30 June: Profit for the year : £4.2m Ordinary dividend paid : £1.8m Number of ordinary shares: 18m Market price at 30 June : £2.90 Calculate the dividend yield for Graham plc.

Which of the following is not true?

Shareholders' funds in a company are made up of:

Howard plc has a gearing proportion of 30% at 30 September 2024. Which of the following statements is NOT TRUE?