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

Calculate the weighted average cost of capital, Company XYZ stock is consid...

Company XYZ stock is considering the two new projects, Project A and Project B. The two projects have similar risk characteristics as the existing business. The managers forecast t

Computation of weights or proportions, Computation of Weights or Proportion...

Computation of Weights or Proportions In computation of the weights or proportions of different capital components, the following values might be used like as: Mar

Capital structure ratio, Capital Structure Ratio Gearing/Leverage/Capi...

Capital Structure Ratio Gearing/Leverage/Capital Structure Ratio The ratio signifies the extent whether the firm has borrowed fixed charge capital to finance the

Formation of sole proprietorship business, Formation of Sole Proprietorship...

Formation of Sole Proprietorship Business When an individual plans to start a business, his or her main objective is to earn profit but there are a number of factors to take in

Clientele effect theory, Clientele Effect Theory Advance via Richardso...

Clientele Effect Theory Advance via Richardson Petit in 1977.It stated such different types of groups of shareholders or clientele have different type of preferences for divid

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

Agency relationship between government and the shareholders, Agency Relatio...

Agency Relationship between Government and the Shareholders Shareholders and via extension, the company they own operate within the environment requiring the charter or licens

Define meaning of investment, Define Meaning of Investment Meanin...

Define Meaning of Investment Meaning of Investment: Investment involves making of a sacrifice in the present with hope of deriving future advantages. Investment has many

Explain mechanics of security trading in stock exchange, Explain Mechanics ...

Explain Mechanics of security trading in Stock Exchange Introduction: An investor should have some knowledge of how the securities markets operate. Marketing of old or new se

Bonferronis approach, We have 10.000 genes and 4.000 of them are annotated ...

We have 10.000 genes and 4.000 of them are annotated for a certain attribute of interest. a. If we have a single set of 10 genes, how many of them should be annotated to be cons

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