CAIE A-Level Business 10.2 Investment Ratio Formulae

CAIE A-Level Business 10.2 Investment Ratio Formulae
Cambridge International AS & A Level Business 9609 syllabus for exams in 2026, 2027 and 20282026–2028

Practise selecting and applying price/earnings, dividend yield and dividend cover formulae from per-share or annual figures and interpreting what the result means to investors.

How this is tested

  • calculate P/E as market price per share ÷ earnings per share using consistent units
  • calculate dividend cover as profit for the year ÷ annual dividend and state the ratio
  • interpret an investment ratio through return, distribution cover, expectations and investor risk

Question 4(a)

[Maximum number: 4]

Using the data in Table 1.2, calculate the dividend cover for 2024.