Reference no: EM132939053

Question - Before the Covid-19 pandemic Company YY established a thriving clothing retailer. The company operated from a self-service store on the outskirts of the city and had few employees. The strategy of the company was to offer a bargain clothes which were at least 20% cheaper than the market and offered a further 10% discount if customers spent more than £100.

Explain how the key accounting ratios would have changed due to the Covid-19 pandemic including periodic lockdowns, social distancing, and wearing masks.

The issued share capital of WICKED PLC consists of 1,000,000 ordinary shares with a nominal value of 50p each and 250,000 6% preference shares at £1 each.

In the year to 31 March 2021, the company's profit after tax was £90,000. Dividends paid during the year comprised the preference dividend for the year and an ordinary dividend of £55,000. The market share price of 31 March 2021 was 80p per share.

Required - Calculate the following ratios for WICKED PLC and comment on its performance from an investor's perspective:

Earnings per share

Dividend cover

Dividend yield

Price Earnings Ratio