ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!
  • google app store apple app store
    • тЬЦ

      Question

      Calculate P/E Ratio from the following: Equity

      share capital @ 10 each : 800000 9% preference share capital: 300000 ┬а Profit (after 35% tax) : 267000 ┬а Depreciation: 67000 Market Price of Equity: 48
      A 15 times Correct Answer Incorrect Answer
      B 16 times Correct Answer Incorrect Answer
      C 17 times Correct Answer Incorrect Answer
      D 18 times Correct Answer Incorrect Answer
      E 20 times Correct Answer Incorrect Answer

      Solution

      Earning Per Share = Profit after tax and dividend/Number of equity shares outstanding = (267000- 27000)/ 80000 = 3 P/E Ratio = Price per share / EPS = 48/3 = 16

      Practice Next
      More Alternate Sources of Finance Questions

      Relevant for Exams:

      ask-question