(a)[4]
Explain two ways in which accounting ratios can help potential investors judge how well a business is performing.
(b(i))[2]
Calculate the price earnings ratio to two decimal places.
(b(ii))[2]
Calculate the dividend yield to two decimal places.
(b(iii))[2]
Calculate the income gearing to two decimal places.
(b(iv))[4]
Calculate the gearing ratio to two decimal places.
(b(v))[2]
Calculate the return on capital employed to two decimal places.
(c)[4]
Discuss the reply the accountant should give to the directors.
(d)[5]
Advise the directors on which option they ought to choose. Support your answer.