Shareholder ratio (HL)

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Presentation transcript:

Shareholder ratio (HL) Gwen and zura

Earnings per share (e.p.s) It measures the company’s potential dividends to be paid to shareholders. It is calculated using: Profit after tax/number of ordinary shares Ordinary shares are shares that aren’t predetermined in value (like preferred shares), and can vary according to the amount of ordinary shares in a company. It tells you the value per ordinary share, which is valuable information for potential shareholders. It will appear on the profit and loss account (income statement) under appropriation  dividends.

(Dividend per share/market price per share) x 100 Dividend Yield Dividend yield is the dividend per share, expressed as a percentage of the current market price of the share. It is calculated using (Dividend per share/market price per share) x 100 Market price/value of a share per share: how much you paid to purchase the share. Dividend per share: the amount of dividends that each shareholder will receive per share. It shows you the amount of return for the risk of investing money in a business.