The following financial information relates to Morgan & Welish Associates
Year | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|
Earnings attributed to Ordinary Shareholders | $100 | $125 | $102 | $115 |
Number of Ordinary Shares | 1000 | 1050 | 1050 | 950 |
Price per share | 110 cents | 150 cents | 145 cents | 130 cents |
Dividend per share | 5 cents | 7 cents | 8 cents | 8 cents |
REQUIRED:
Calculate Morgan & Welish’
i) earning per share
II) dividend yield
iii) price/earning ratio
Profitability Metrics:
There are several profitability metrics to evaluate a company’s profitability. Dividend yield measures shareholders’ return on investment. Earnings per share is the profit earned by each outstanding share of common stock. The PE ratio determines the relative value of a company’s shares and growth potential.