BPP Mock exam 1 – question 25

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
March 1, 2017 at 8:05 pm #375001
Candy
Member
- Topics: 135
- Replies: 79
Dear John,

Please explain how they got earnings yield = 6.7%

P/E = 15

1/(P/E ratio) = 6.7?

I got:

1/15 = 0.06%.

Many thanks
March 1, 2017 at 10:35 pm #375027
John Moffat
Keymaster
- Topics: 57
- Replies: 54857
1/15 = 0.0666

This is the same as 6.66% (which rounds to 6.7%), just as 0.01 is the same as 1% and 0.10 is the same as 10%.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘BPP Mock exam 1 – question 25’ is closed to new replies.