Graham Plc Has the Following Information for the Year to 30

question 3

Multiple Choice

Graham plc has the following information for the year to 30 June:
Profit for the year : £4.2m
Ordinary dividend paid : £1.8m
Number of ordinary shares : 18m
Market price at 30 June : £2.90
Calculate the dividend cover for Graham plc.

• A) 0.42 times
• B) 2.3 times
• C) 10 times
• D) 1.33 times

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Definitions:

Registration Statement

A statement required by the Securities and Exchange Commission to indicate details about a business selling securities.

Cost of Repair Rule

A legal principle that allows a party suffering from property damage to recover the expenses necessary to restore the property to its pre-damage condition.

Negligent Credentialing

Occurs if a hospital has retained a physician that the governing body of the hospital knew or should have known was incompetent.

Actual Privity

A real or direct relationship between parties, especially in contracts, where both are expressly named and involved.