HOTROD Ltd has a current market price per share of 1 100 cents per share. HOTROD’s previous annual financial report reported a dividend of 150 cents per share. The interim financial statement for the first six months of the current year reported an interim dividend of 65 cents per share. The indications are that an additional dividend of 35 cents per share is achievable.
Required:
1. What is HOTROD’s trailing Price/Earnings multiple at the end of the current financial year?
2. What is HOTROD’s current multiple with insider information?