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<p><strong>A.$40</strong></p> <p><strong>B.$100</strong></p> <p><strong>C.$160</strong></p> <p><strong>D.$0.40</strong></p> <p><strong>E. Non of these(if so please mention how much)</strong></p> <p> </p> <p> </p>
Ans. (E) 16
Price per share = EPS / EP ratio
E. $16
(E) Non of the above.
Option E
Option E
the real answer is4
PROOF
EP Ratio Price/Earning which is .5
4/8 = .5
Market Price of the Share is $16 and Option is E, None of the above.
So EP ratio is the inverse of PE Ratio which is = Earnings per Share / Market Price per Share
We know EPS = 8 and EP Ratio is 0.5 then assigning these values to the equation, we get
0.5 = 8/ Price, Solving for Price we get 16 as the Market Price.
Option (E) Answer will be
Given that, E/P =0.5; E = $8
P = E/0.5 or, $(8/0.5) or $16
I'd like to add that EP Ratio and PE Ratio are not the same thing, infact EP Ratio is the inverse of PE Ratio and is actually better known as the Earnings Yield.
thansk venakatiramanoption D
the answer is16
