Reference no: EM132841786

Problem - Supercite Limited is an internationally listed company. It has an issued share capital of 5 million ordinary shares. Most of the shares are held by large financial institutions. The current market price per share is R35.

The company currently has an overdraft of R90 million which is carrying an annual interest rate of 15%. The company has no other borrowings.

Some line items from the statement of profit or loss and other comprehensive income for the year ended 31 January 2017 of Supercite Limited's were as follows:

R'000

Operating profit 54,000

Interest paid 13,500

Profit before taxation 40,500

Taxation 6,000

Profit after taxation 34,500

Ordinary dividend paid 7,500

Retained profit for the year 27,000

Required -

1. What will the earnings per share be for Supercite Limited as at 31 January 2017?

2. What will the debt ratio for Supercite Limited be as at 31 January 2017?