The Following Information Is Available for Companies A,B,C and D

question 11

Multiple Choice

The following information is available for companies A,B,C and D:
$$\begin{array} { l c r r r } & \text { A } & { \text { B } } & \text { C } & { \text { D } } \\\text { Number of ordinary shares } & 1,000,000 & 1,250,000 & 750,000 & 500,000 \\\text { Current share price } & £ 2.50 & £ 3.00 & £ 1.50 & £ 1.75 \\\text { Total profits after tax } & £ 200,000 & £ 225,000 & £ 150,000 & £ 250,000 \\\text { Total ordinary dividends } & 100,000 & 100,000 & 50,000 & 40,000\end{array}$$

Which company has the highest dividend cover?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Factoring

The process of breaking down an equation into simpler components that are multiplied together.

Equation

An assertion in mathematics that two expressions, which may include variables, are equal.

Factoring

The process of breaking down an expression into a product of simpler expressions.

Factoring

The process of breaking down an expression into a product of simpler factors.