Calculate three investment ratios for each companies

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Question - Consider the following information for two companies in the same industry. A summary of their latest results are provided below:

 

City Ltd

Country Ltd

Total Dividend

$330,000

$680,000

Number of Shares Issued

$500,000

$1,200,000

Net Profit After Tax

$760,000

$1,650,000

Market Price of Share

$8.10

$17.00

Required -

[1] Calculate three Investment Ratios for each of the above companies. Show formulae and calculations.

[2] As an investor, which of these companies would you prefer to buy shares in?

Reference no: EM132791706

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