Equity calculation

Question 1

Dividend yield for a share with a dividend of 5.24p and a share price of £1.30

Answer 1

Calculation is (net dividend per share / current share price) x 100
(5.24 / 130) x 100 = 4.03%

Question 2

Dividend yield for a share with a dividend of 6.18p and a share price of £5.67

Answer 2

Calculation is (net dividend per share / current share price) x 100
(6.18 / 567) x 100 = 1.09%

Question 3

Dividend yield for a share with a dividend of 4.29p and a share price of 89p

Answer 3

Calculation is (net dividend per share / current share price) x 100
(4.29 / 89) x 100 = 4.82%

Question 4

Earnings per share for a company with profits of £1.2m, tax / preference
share dividends and other minority interests of £117,000 and 645,000 issued
ordinary shares.

Answer 4

Calculation is Profit attributable to ordinary shareholders / number of shares in
issue
We must deduct the preference share dividend / tax and minority interests
(1,200,000 – 117,000) / 645,000 · 1,083,000 / 645,000 = £1.68
EPS is therefore £1.68 per share

Question 5

Earnings per share for a company with profits of £870,000, tax / preference
share dividends and other minority interests of £245,000 and 1.25m issued
ordinary shares.

Answer 5

Calculation is Profit attributable to ordinary shareholders / number of shares in
issue
We must deduct the preference share dividend / tax and minority interests
(870,000 – 245,000) / 1,250,000 · 625,000 / 1,250,000 = 50
EPS is therefore 50p per share

Question 6

Earnings per share for a company with profits of £257,123, tax / preference
share dividends and other minority interests of £67,891 and 1,230,001 issued
ordinary shares.

Answer 6

Calculation is Profit attributable to ordinary shareholders / number of shares in
issue
We must deduct the preference share dividend / tax and minority interests
(257,123 – 67,891) / 1,230,001
189,232 / 1,230,001 = 0.15
EPS is therefore 15p per share