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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

<p>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.</p>

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/10/03
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Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

iii)10

Mohammed Mohammed
by Mohammed Mohammed , Senior SAP Consultant , Abyat Mega Store

No of shares is  50/10=5 crores

EPS is25 /5=5 

PE ratio formula is  Market Value / EPS

PE =50/5 =  10  

 

Deleted user
by Deleted user

Your answer Mr. Vinod

 

I do not have a clue

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