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Fundamentals of Financial Management Essay Preview: Fundamentals of Financial Management Report this essay (a)company Acompany B1Dividend per share (2016)16.403.662Earnings per share (2016)32.8012.203Dividend cover ratio (1/2)0.50.34Retention ratio (1.00-3)0.50.75Return on equity0.0750.05856Growth ratio (4×5)0.03750.040957Div1 [1×(1.00+6)]17.0153.818Current share price463.0250.59Cost of equity (7/8+6)0.07420.05616(b)company Acompany B1share price4.632.5052No. of shares3260300007156610003market to book value1.461.154equity market value(1×2)150951890017927308055equity book value(4/3)103391705515588963526capital gearing28.36%56.21%7debt book value(5×6/(1-6))409294914.520010405118debt market value409294914.520010405119capital market.