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If the market price of its equity share is Rs.50, the PE ratio will be: (i) 50 (ii) 5 (iii) 10 (iv) 20

 A company with equity capital of Rs.50 crores (Face Value of Rs.10/- per share) makes gross profit of Rs.70 crores and net profit after tax of Rs.25 crores.

ALM General Business Administration Management
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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/01/26
Upvote (4) Views (15) Followers (11) Answers (11) Report Question
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VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Price Earning Ratio: Market Value per Share / Earnings per Share (E P S)

Here the market value per share is : Rs.50

Earning per share is : Profit / No of shares =25,00,00,000 /5,00,00,000 =5

 

Price Earning Ratio = Market Value per Share / Earnings per Share (E P S)

                                   =  Rs.50 /5  =10

 

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

(iii)10

Thank you.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

(iii)10

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

iii10

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Option3

Mohamed Galal Hussein Ahmed Mohamed
by Mohamed Galal Hussein Ahmed Mohamed , Technical Mnager , Fast Building Contracting Co.

Agree with all (III)10

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

It should be (iii)10

thanks

waeil osman EL sharif
by waeil osman EL sharif , Business Coach & Relationship Manager -Corporate Banking , Sudanese Egyptian Bank

iii- 10

Thanks Mr.VENKITARAMAN KRISHNA MOORTHY VRINDAVAN for the explanation

Deleted user

He only answers Experts

 

10

Deleted user

thanx for invitation

the answer is iii-10

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