For the Financial Year Ended 31 August 2019, Jeremies Plc

Multiple Choice

For the financial year ended 31 August 2019, Jeremies plc has profit before tax of £10.5m, an income tax charge of £2.8m, preference dividends of £0.2m, a total dividend per share for the year of 2.5 pence and 75m ordinary shares in issue throughout the financial year. At 31 August 2019, one ordinary share in Jeremies was valued at 250 pence. Your colleague has calculated a ratio of 4 from the above data. Which ratio has your colleague calculated?

A) Dividend cover
B) Dividend yield
C) Earnings per share
D) Price/Earnings ratio