Dividend cover ratio, Finance Basics

Assignment Help:

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


Related Discussions:- Dividend cover ratio

Advantages of bonus matter, Advantages of Bonus Matter a) Tax advanta...

Advantages of Bonus Matter a) Tax advantages         Shareholders can sell new shares, and create cash in form of capital gains such is tax exempt unlike cash dividends wh

Taxation position and profitability & liquidity, Taxation Position and Prof...

Taxation Position and Profitability & Liquidity Profitability and liquidity A company's capacity to pay dividend will be determined primarily with its capability to creat

Solutions to agency problem, Solutions to agency problem The bondholde...

Solutions to agency problem The bondholders might receive the following procedures to protect themselves from the process of the shareholders that might dilute the value of th

Discuss capital budgeting techniques, Discuss capital budgeting technique...

Discuss capital budgeting techniques including : the Payback Rule, IRR, NPV, and the Profitability Index. Be sure to discuss the advantages and disadvantages of each one.  Di

Conditions for lease finance, Conditions for Lease Finance Lease finan...

Conditions for Lease Finance Lease finance is ideal within the following circumstances: a) Whenever the asset depreciates faster. b) Whenever the asset is matter to obso

Hull-white model, Hull-White model As an extension of the Vasicek model...

Hull-White model As an extension of the Vasicek model, Hull-White model (1990) assumed that the short interest rate process follows the mean-reverting stochastic differential e

Pursuing self esteem ambitions and creative accounting, Pursuing self estee...

Pursuing self esteem ambitions and Creative Accounting Pursuing power and self esteem ambitions This is called "empire building" to enlarge the firm via acquisitions and me

Islamic banking, what is the exact nature of IDB sukuk

what is the exact nature of IDB sukuk

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd