•
Analysis of Price/earning ratio
Price earning ratio of Prime, Mutual trust, and mercantile bank shows an increasing trend from year 2006 to 2007 but it shows decreasing trend from year 2005 to 2006. The reason behind the increasing trend is the substantial increase in the market price per share over the year 2006 to 2007.Shahjalal Islami bank and BRAC bank started their share trading from 2007. 3.4.3 Calculation and analysis of Dividend yield •
2005
Dividend yield of Prime Bank: Dividends per share = Tk 10.14 Market price per share = Tk 682
∴ Dividend yield = =
dividends per share market price per share
Tk 10.14 Tk 682
= 1.49% 2006
Dividends per share = Tk 18.03 Market price per share = Tk 529
∴ Dividend yield = =
dividends per share market price per share
Tk 18.03 Tk 529
= 3.40% 2007
Dividends per share = Tk 21.55 Market price per share = Tk 924
∴ Dividend yield = =
dividends per share market price per share
Tk 21.55 Tk 924
= 2.33% Figure 55: Dividend Yield Ratio of Prime of Prime Bank Bank
Table 55: Dividend Yield Ratio