Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

Look at Source B in the insert.
(a(i))[5]

Calculate the price/earnings ratio to two decimal places.

(a(ii))[1]

Calculate the dividend yield to two decimal places.

(a(iii))[3]

Calculate the gearing ratio to two decimal places.

(a(iv))[3]

Calculate return on capital employed to two decimal places.

(b(i))[4]

Analyse X plc’s performance by comparing the results with the industry average for: price/earnings ratio.

(b(ii))[4]

Analyse X plc’s performance by comparing the results with the industry average for the gearing ratio.

(c)[5]

Advise whether the directors should propose a final dividend for 2022 or not. Justify your answer.

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