Just to get some insight into reading of annual reports as I am always a surface reader when it comes to reading material facts in an annual report. May be becuase I am not good in my accounting and I thought that I need some indepth reading when it comes to reading annual reports. So like to get some clarifictions from a versatile in this repsect.
I was reading the Hotel Services (Ceylon) PLC and like to pose the following questions for some generous answers. (beg your pardon if I am asking any silly questions)
01. In this particular company although the profits have gone up compaired to previous yers , the earnings per share has come down. (Share Price in 2010/11 is 23.10 (on a particulr day) compaired to 114/- in 2006/2007. Is there any relevance between share price and earnings per share? If not what is the formula to calculate it?
02. Share Capital is Rs. 176,000,000/--
Is this figure equals to multification of initial share price and issued number of shares?
03. What is the advntage for a listed company when its share price goes up? Is there any financial gain for the company?
04. If a share of a company is low will that company has high exposure for a take over bid?
These are the quetions initially sprung to my mind and as and when I have similar questions like to post them for clarifications and answers.
So then until I get some answers good night to all of you.
Last edited by milanka on Thu Jun 16, 2011 5:21 pm; edited 1 time in total (Reason for editing : heading changed to lower case)