investor ratios Flashcards
1
Q
what do investor ratios show?
A
assesses returns and performance of the business from the POV of an investor
2
Q
what is the equation for earnings per share? give relevant units.
A
net profit / number of ordinary shares
pence / share
3
Q
what is the equation for dividends per share? give relevant units.
A
total dividend paid / number of ordinary shares
pence / share
4
Q
what is the equation for P/E ratio? give relevant units.
A
current share price / EPS
no units
5
Q
what does the P/E ratio show?
A
displays confidence in firm. higher the number, usually better
6
Q
what is the equation for dividend yield?
A
dividend per share / current share price
%
