Eserdie 44(20) c... she financial records of Companies Z and A are presented below for...

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Eserdie 44(20) c... she financial records of Companies Z and A are presented below for the 5% annual dividend entitement ( $3.750 per year). Instructions a. Calculate the following for each company. (i) Profit margin (4) (ii) Return on equity to common shareholders (4) b. Based on the ratios calculated in part a. which company is more profitable for is common sharcholder? (2) c. Calculate the following for each company: (i) Earnings per share (4) (ii) Price-earnings ratio (4) d. Based on the ratios calculated in part optimistic about the furure of the company? Explain your answet by reference to the ratios calculated. (2)

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