Dividend cover ratio, Finance Basics

Dividend Cover Ratio

Dividend cover = EPS/ DPS = Earning to ordinary shares/Dividend paid      

  1. This signifies the number of times dividend can be paid from earnings to ordinary shareholders. The higher the DPS the lower the dividend cover and vice-versa as consider the following two firms X and Y

 

 X

Y

EPS

DPS

Dividend Corner                

12

3

12/3 = 4

12

4

12/4 = 2.4 times

Posted Date: 1/30/2013 2:17:57 AM | Location : United States







Related Discussions:- Dividend cover ratio, Assignment Help, Ask Question on Dividend cover ratio, Get Answer, Expert's Help, Dividend cover ratio Discussions

Write discussion on Dividend cover ratio
Your posts are moderated
Related Questions
Foreign Credit Insurance Association (FCIA) An agent of the Export/Import Bank, FCIA gives exporters with insurance coverage beside both commercial and political risk. The main

Example of Dividend Basis Valuation Company Laxmi Synthetics pays a dividend of 10% on its Sh.60 par value ordinary shares.  This company uses a discount rate of 15%.  A

Types of Partners 1. General Partners -Unlimited active and liability in participation in partnership activities. 2. Limited partners - Limited liability in the management of

What are the types of Money and Bank Regulations? Types of Money : a. Commodity money b. A commodity-backed money c. Fiat money Bank Regulations: a. Deposit i

Market For Funds Market for Funds and Financial Institutions in Middle Asia 1. Financial markets refer to an elaborate system of the financial institution and arrange


Collection Policy The firm's collection policy may affect also our study.  The higher the cost of collecting accounts obtainable the lower the bad debt losses.  Therefore the

what is the ambiguity

some report about credit bank

What is Nominal and Real Return While nominal return is the return in nominal rupees, real return is equal to the nominal return adjusted for changes in prices i.e. rate of