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

Analysis and communication of accounting information — practice question

The directors of M plc have supplied figures from the financial statements for the year ended 30 June 2018.
(a)[2]

Calculate the market price of one ordinary share.

(b(i))[3]

Calculate earnings per share to two decimal places.

(b(ii))[3]

Calculate the price earnings ratio to two decimal places.

(b(iii))[3]

Calculate dividend cover to two decimal places.

(c)[6]

Analyse the performance of both companies by considering only the gross margin, profit margin and return on capital employed.

(d)[9]

Analyse the performance of both companies by considering the other ratios.

(e)[5]

Advise Pepe which of the two companies he should invest in. Justify your answer.

Worked solution & mark scheme

This 31-mark question has a full step-by-step worked solution and mark scheme. One marking point: 0.08 / 0.05 = 1.60

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI