Question

Which of the following statements is correct? I: Price earnings (P

  • E ratio shows how much an investor is willing to pay for each rupee of the earnings given the actual market price (True) II: ROE (Return on Equity) is calculated by dividing PAT (Profit after Tax) by Common Shareholders’ Equity (True)
A a) Only I
B b) Only II
C c) Both I and II are correct
D d) Both I and II are in correct
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