The following particulars relate to extracts from the annual financial statements of Smear Limited, a quoted company, fo

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answerhappygod
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The following particulars relate to extracts from the annual financial statements of Smear Limited, a quoted company, fo

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The following particulars relate to extracts from the annual
financial statements of Smear Limited, a quoted company, for the
year ended 31 December 2021:
Share capital:
Authorized: 1,050,000 Ordinary Shares of
Shs.20/= each.
Issued and fully paid: 525,000 Ordinary Shares
of Shs. 20/= each.
Profit before taxation
15,750,000.00
Taxation
7,087,500.00
Profit after taxation
8,662,500.00
First and final dividends for 2021
3,465,000.00
Retained profits
5,197,500.00
The market price of ordinary shares of Smear Ltd is Shs. 95/=
per share.
In the same year Paradise Limited, an unquoted company in the
same sector had a net Profit after tax of Shs. 2,625,000/= and
875,000 Ordinary shares issued and fully paid.
Required:
i. The dividends cover of Smear Limited.
ii. The Earnings Yield for Smear Limited.
iii. The Price Earnings ratio of Smear Limited.
iv. The possible Market price per share of Paradise
Limited.
v. The valuation of Paradise Limited.
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