Question 4(b)
[Maximum number: 12]
Evaluate whether PAIR should increase dividends to shareholders in 2025.
CAIE A-Level Business 10.4.2 Ratio Analysis for Strategic Decisions
Practise interpreting profitability, liquidity, efficiency, gearing and investor ratios over time or against competitors and evaluating how far they support a strategic choice.
How this is tested
- compare each ratio with a prior year, competitor or target before judging performance
- trace a ratio change to financing, growth, dividend or operating strategy and stakeholder impact
- evaluate conclusions using accounting limitations, qualitative evidence and future conditions