(a)[5]
Prepare the statement of changes in equity for the year ended 31 December 2017. You do not need a total column.
(b(i))[1]
Calculate earnings per share for the year.
(b(ii))[1]
Calculate the price earnings ratio for J plc.
(b(iii))[1]
Calculate the dividend yield for the shares.
(b(iv))[1]
Calculate the dividend cover for J plc.
(b(v))[2]
Calculate the return on capital employed for J plc.
(c)[9]
Analyse the performance of J plc using industry averages as the benchmark. Suggest reasons for the differences.
(d)[5]
Advise the directors whether or not the company should take the loan. Support your answer by referring to the effect on the company’s return on capital employed and any other relevant information.