The Role of Various Ratios Used by Financial Analysts

Present and explain the role of various ratios used by financial analysts: price/earnings ratio, gross dividend yield, coverage ratio, and earnings per share. Why all of them are needed? How are they used?

To answer the question, take the financial analysts of a company based in the UK as an example. For the items in your answer, give (where possible) supporting evidence/argument, references to the work of some other writer, or both. Demonstrate a thorough understanding of capital ratios applied by financial analysts, the rationales for applying different capital ratios, the order of applying these measures, and the connections between them. Provide the relevant literature and reference this accurately.