(a)[4]
Prepare a statement that shows the movement in retained earnings for the year ended 31 December 2021.
(b(i))[3]
Calculate, to two decimal places, the price earnings ratio.
(b(ii))[2]
Calculate, to two decimal places, the dividend yield.
(b(iii))[2]
Calculate, to two decimal places, the gearing ratio.
(b(iv))[2]
Calculate, to two decimal places, the income gearing.
(b(v))[2]
Calculate, to two decimal places, the return on capital employed.
(c)[2]
Explain what is meant by a 'highly geared company'.
(d)[3]
Explain the change in the price earnings ratio with reference to your calculation in part (b)(i).
(e)[5]
Assess whether or not the directors of E plc made the correct decision in issuing the debenture to finance the new project. Justify your answer.