Response to the following questions:
1. Lots ov' Profit Ltd, is trading at $25 per share. There are 250 million shares outstanding. What is the market capitalisation of this company?
2. The MedTech Company recently reported net profit after tax of $15.8 million. It has 2.5 million shares outstanding and pays preference dividends of $1 million per year.
a. Compute the company's earnings per share (EPS).
b. Assuming that the share currently trades at $60, determine what the company's dividend yield would be if it paid $2 per share to ordinary shareholders.
c. What would the company's dividend payout ratio be if it paid $2 per share in dividends?