The dividend payout ratio is 60 and the return on equity is


XYZ Ltd is expected to pay a DPS of Sh.6 in one year's time. The dividend payout ratio is 60% and the Return on Equity is 15%. Determine whether the share is overvalued if the MPS is Sh.40.

Discuss four limitations of ratio analysis.

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Finance Basics: The dividend payout ratio is 60 and the return on equity is
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