Reference no: EM132961087

The following information was extracted from the books of Koni Company Ltd. It is financed partly by ordinary share capital of 20,000 shares at Ksh 10, and selling at Ksh 25 currently at the stock exchange. This company reported a profit of Ksh 1 Million before tax and intends to declare a dividend of 10% preference dividends on its 600,000 preference shares and 30% of ordinary dividends. The corporate tax rate is 50%.

Required:

Problem 1: Calculate:

i) E.PS.
ii) Earnings Yield
iii) Price Earnings ratio
iv) Return on capital employed.