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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