FINAL WORK - ERASMUS.docx

Cash coverage ratio cash cash equivalentsinterest

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Cash Coverage Ratio (Cash + Cash Equivalents)/Interest Expenses 5.78 5.18 6.16 17.99 18.86 F) MARKET VALUATION Earnings yield (EPS/Market price per share) 3.50 9.64 8.62 9.25 7.91 Dividend yield (Gross Div./Market Price) 1.04 3.44 6.07 7.18 6.04 Earnings per share (EPS) Profit after Tax/ Equity Shares 63.00 112.00 87.00 Price Earnings ratio (PE) Market price per share / Earnings per share 0.29 0.10 0.12 0.11 0.13 Dividend payout (Ordinary Dividends/Distributable earnings)*100 20.16% 28.75% 40.09% 42.33% 40.90% Dividend cover EPS/DPS 3.37time s 2.80time s 1.42times 1.29time s 1.31times Question 3 2 | P a g e
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Question 4 SYSTEMATIC RISK UNSYSTEMATIC RISK Unpredictable economic growth trends Changes in regulation in the Banking industry The impact of public debt and taxation policy The new entrants (eg.south African Banks) into the Industry Post-election shocks and government spending The overall perception of fraudulent reporting among the collapsed indigenous banks Recapitalization reforms The perceived political influence in the governing policies of the Central Bank Question 5 BUSINESS RISK FINANCIAL RISK Moral hazard problems: This occurs when someone increases their exposure to risk when insured ,especially when a person takes more risk because someone else bears the cost of those risks. A moral hazard may occur when the actions of one party may change to the detriment of another after a financial transaction has taken place.
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  • Summer '16
  • EMMANUEL
  • EcoBank, Curr. Assets- Other Assets

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