a)

Explanations of Ratios

1. Earnings Per Share (EPS):
   • Indicates the profit earned per share. Higher EPS often attracts investors.
   • Limitations: Ignores debt levels and other qualitative factors.
2. Dividend Yield:
   • Reflects the return on investment via dividends. Investors seeking regular income prefer high yields.
   • Limitations: Does not account for capital gains or stock price volatility.
3. Dividend Cover:
   • Measures how well earnings cover dividends. A higher ratio indicates retained profits for growth.
   • Limitations: Ignores company-specific policies or market expectations.
4. P/E Ratio:
   • Shows how much investors are willing to pay per unit of earnings. High ratios indicate growth expectations.
   • Limitations: Does not consider market conditions or sector variations.

b. Analysis of Changes Over Four Years

1. EPS Variability:
   • 2015: EPS rose due to increased earnings and share issuance.
   • 2016: EPS declined despite stable earnings due to a larger share base.
   • 2017: Significant EPS growth resulted from reduced shares post-buyback.
2. Dividend Yield Increase:
   • 2016-2017: Higher yields reflect steady dividends against declining stock prices, attracting income-focused investors.
3. Dividend Cover Decline:
   • Indicates increased dividend payout relative to earnings in 2016, but a rebound occurred in 2017.
4. P/E Ratio Fluctuations:
   • 2015-2016: Increased due to rising prices, signaling market confidence.
   • 2017: Decline due to reduced price, indicating caution or lower growth expectations.

These changes may be due to evolving investor sentiment, share buybacks, dividend policies, or earnings management practices.