Pls any genious chek my answer
Q6. Using the following information, compute the price earning ratio to the nearest tenth.
Income Rs. 130,000
Beginning shares outstanding 250,000
Ending shares outstanding 270,000
Current price per share Rs. 7.50
Dividend per share Rs. 1.20
Earnings per share (EPS) Ratio = (Net profit after tax − Preference dividend) / No. of equity shares (common shares)
Earnings per share (EPS) Ratio = 130,000 / 270,000 = 0.4814
Price Earnings Ratio = Market price per equity share / Earnings per share
7.50 / 0.4814 = 15.49
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