Explain in what way the use of ratios may be helpful when analysing accounting data.
Calculate, to two decimal places, the income gearing ratio for TC plc.
State what this ratio indicates to an investor about the company’s risk.
Name one further ratio that measures the link between fixed cost capital and total capital.
Calculate, to two decimal places, TC plc’s dividend cover.
State what this ratio reveals to an investor about the company’s scope for capital growth.
Calculate, to two decimal places, TC plc’s dividend yield.
State what this ratio indicates to an investor who wants income.
Name and calculate the ratio that shows the profit attributable to each ordinary share.
Name and calculate, to two decimal places, the ratio that reflects investors’ confidence in the future of the business.
Advise Fred on whether he ought to follow his brother’s advice. Support your answer.