The following information relates to A Ltd and B Ltd. Two companies that operate in the same industry and listed on the stock markets. All figures are in Ghana Cedis.
Account
Summarized Profit and Loss
A. Ltd.
B Ltd
Operating profit
80,000
Interest paid
40,000
10,000
Profit after interest
70,000
Dividend paid
25,000
20,000
Retained Profit
15,000
50,000
Summarized Balance Sheet
A Ltd.
B Ltd.
Total Assets less Current liabilities
600,000
Financed by:
Ghc 1.00 Ordinary shares
100,000
Reserves
400,000
10% Unsecured Loan stock
The market price of A Ltd. Shares is Gh¢3.50 and that of B Ltd is Gh¢4.90. The 10% unsecured loan stock for both companies is currently quoted at par.
Required:
For each company calculate the following variables and using them company the performance of the two companies
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here