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    Question

    Which of the following statements is correct? I:

    Price earnings (PE) 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 Correct Answer Incorrect Answer
    B b) Only II Correct Answer Incorrect Answer
    C c) Both I and II are correct Correct Answer Incorrect Answer
    D d) Both I and II are in correct Correct Answer Incorrect Answer

    Solution

    The correct answer is C

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