Question : A company's net income after preference dividend payment was Rs.63 lakh. There were 1,80,000 equity shares. The company's P/E ratio was 8.50 times.
What are the earnings per share and market value per share?
Option 1: Rs.45 & Rs.382.50 respectively
Option 2: Rs.35 & Rs.297.50 respectively
Option 3: Rs.33.16 & Rs.281.86 respectively
Option 4: Rs.45 & Rs.5.29 respectively
Answer (1)
18th Jan, 2024
Correct Answer: Rs.35 & Rs.297.50 respectively
Solution :
EPS = 63,00,000/ 1,80,000 = 35
Market Price = P/E Ratio × EPS
= 8.5 × 35
= 297.5
Hence option 2 is the correct answer.
Comments (0)
Related Questions
Trending Articles/News
