Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Accounting Ratios Question

  • 21-06-2010 11:28am
    #1
    Aoifey!
    Registered Users Posts: 4,571 ✭✭✭


    Okay, so I'm ;learning the basics of this question as a back up in case Suspense and Club don't come up.

    So question is, how do you get the answer to these 2 ratios. I just need the formula.

    "How long would it take one Ordinary share to recover its value at present payout rate?" - 2009

    and

    "How long would it take one ordinary share to recoup (recover) its 2007 market price based on present divend payout rate?"


Comments

  • #2
    EuropeanSon
    Registered Users, Registered Users 2 Posts: 2,819 ✭✭✭EuropeanSon


    Both are the same. Divide share price in cents by dividend per share in cents to get a number of years.


  • #3
    Aoifey!
    Registered Users Posts: 4,571 ✭✭✭Aoifey!


    EuropeanSon wrote: »
    Both are the same. Divide share price in cents by dividend per share in cents to get a number of years.

    Thank you!


  • #4
    Burswood
    Registered Users Posts: 122 ✭✭Burswood


    Is that the Price Dividend Ratio?


  • #5
    Niall09
    Registered Users Posts: 806 ✭✭✭Niall09


    Burswood wrote: »
    Is that the Price Dividend Ratio?

    Price Earnings Ratio (P/E)

    Edit: Not correct ^


  • #6
    EuropeanSon
    Registered Users, Registered Users 2 Posts: 2,819 ✭✭✭EuropeanSon


    Niall09 wrote: »
    Price Earnings Ratio (P/E)
    No it's not. That's a different one. It is Price/Dividend.


  • Advertisement
  • #7
    Burswood
    Registered Users Posts: 122 ✭✭Burswood


    Niall09 wrote: »
    Price Earnings Ratio (P/E)

    Hmmm.. Why would you include a dividend value in a price earnings ratio?


  • #8
    EuropeanSon
    Registered Users, Registered Users 2 Posts: 2,819 ✭✭✭EuropeanSon


    Burswood wrote: »
    Hmmm.. Why would you include a dividend value in a price earnings ratio?

    He's wrong. Price/ Earnings is a different one.


  • #9
    Niall09
    Registered Users Posts: 806 ✭✭✭Niall09


    EuropeanSon wrote: »
    No it's not. That's a different one. It is Price/Dividend.
    Burswood wrote: »
    Hmmm.. Why would you include a dividend value in a price earnings ratio?
    EuropeanSon wrote: »
    He's wrong. Price/ Earnings is a different one.

    Oops, sorry!

    I was thinking of current performance. :o


  • #10
    EuropeanSon
    Registered Users, Registered Users 2 Posts: 2,819 ✭✭✭EuropeanSon


    I hope I don't have to do ratios, they're a nasty bugger.


  • #11
    Stryderman
    Registered Users Posts: 211 ✭✭Stryderman


    What is the formula for the P/D ratio?


  • Advertisement
  • #12
    EvilLlamaThingy
    Closed Accounts Posts: 72 ✭✭EvilLlamaThingy


    Total Ordinary Dividend
    Issued Ordinary Shares = Years

    That's price dividend.


  • #13
    Stryderman
    Registered Users Posts: 211 ✭✭Stryderman


    EvilLlamaThingy wrote: »
    Total Ordinary Dividend
    Issued Ordinary Shares = Years

    That's price dividend.

    Thanks, when is this used?:o


  • #14
    EvilLlamaThingy
    Closed Accounts Posts: 72 ✭✭EvilLlamaThingy


    Used to find the number of years it'll take a share to recover it's share price *at present payout rate* (That last part is important)


  • #15
    EuropeanSon
    Registered Users, Registered Users 2 Posts: 2,819 ✭✭✭EuropeanSon


    EvilLlamaThingy wrote: »
    Total Ordinary Dividend
    Issued Ordinary Shares = Years

    That's price dividend.
    No it isn't. That's dividend per share. P/D is Market price/Dividend per share.


  • #16
    EuropeanSon
    Registered Users, Registered Users 2 Posts: 2,819 ✭✭✭EuropeanSon


    Stryderman wrote: »
    Thanks, when is this used?:o
    That is wrong. That formula is dividend per share. P/D is Market price/dividend per share.


  • #17
    Stryderman
    Registered Users Posts: 211 ✭✭Stryderman


    This is confusing me :L but thanks I just checked the 2009 marking scheme and it looks like your right


  • #18
    EuropeanSon
    Registered Users, Registered Users 2 Posts: 2,819 ✭✭✭EuropeanSon


    Stryderman wrote: »
    This is confusing me :L but thanks I just checked the 2009 marking scheme and it looks like your right
    Hopefully I just saved you a few marks. I am right, I did one an hour ago, my mom corrected it, and she's a teacher, and it was right.


  • #19
    EvilLlamaThingy
    Closed Accounts Posts: 72 ✭✭EvilLlamaThingy


    EuropeanSon wrote: »
    No it isn't. That's dividend per share. P/D is Market price/Dividend per share.

    Oh crap you're right xD My bad! sorry!


Advertisement