An exercise for you

Here is an exercise for you on ratios.

Let’s say shares in Woolworths are currently $30.00 each. The earnings are $2.00 per share and the annual dividend is $1.20.

Try to determine what the following ratios for Woolworths are:

Dividend yield: ……/……, which is ……%.

Earnings yield: ……/……, which is ……%.

Price to earnings ratio: ……/…… which is …...

The answers are on the next page, so write down your answers and check whether you got them right.

Feel free to go back one page to see how the ratios are calculated.