Business 9609 · AS & A Level · Operations strategy

Operations strategy — practice question

(a)[1]

Using Table 1.1, calculate the price earnings ratio for 2024.

(b)[3]

Using Table 1.1, calculate the return on capital employed for 2024.

(c)[12]

Evaluate the usefulness of the data in Table 1.1 for potential shareholders when deciding whether to buy shares in CD.

Worked solution & mark scheme

This 16-mark question has a full step-by-step worked solution and mark scheme. One marking point: Apply PE ratio = market price per share / earnings per share, then calculate 4.00 / 0.6 = 6.67 (accept 6.7, 6.66).

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