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From the financial statements of Sagicor provided, calculate:
The dividend yield for both years.
Dividend Yield = Cash Dividend per share x 100
Market Price per share
2021 2020
1.11 x 100 0.85 x100
58.25 49.95
= 0.019 or 1.91% =0.017 or 1.7%
The PE ratios for both years
P/E Ratio= Market value per share
Earnings per share
2021 2020
58.25 49.95
4.46 3.53
=13.00 =14.15
The dividend payout ratio for both years
Dividend pay-out ratio = Dividend per share
Earnings per share
2021 2020
1.11 x100 0.85
4.46 3.53
=24.89% =24.08%
B. Write a report to the CEO of the company you have chosen and provide an
analysis of the results in Part A for the two years? (30 marks)
C. Make recommendations to the CEO about actions to be taken to improve
the dividend yield, PE ratios and dividend payout ratios?
Answer & Explanation
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