(a(i))[2]
Calculate earnings per share, giving your answer to two decimal places.
(a(ii))[1]
Calculate the price earnings ratio, giving your answer to two decimal places.
(a(iii))[1]
Calculate the dividend cover, giving your answer to two decimal places.
(a(iv))[1]
Calculate the dividend yield, giving your answer to two decimal places.
(b)[3]
Explain why the directors prefer to keep dividend cover higher.
(c(i))[2]
Define what is meant by liability.
(c(ii))[2]
Define what is meant by provision.
(c(iii))[2]
Define what is meant by contingent liability.
(d)[6]
Explain how the expected compensation of $\$20\,000$ should be treated in the financial statements, with reference to the relevant International Accounting Standard (IAS).
(e)[5]
Advise the directors on which of the two options they ought to select, and justify your response.