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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › P/E ratio
a company has recently declared a dividend of 12c per share. The share price is 3.72 cum div and earnings for the most recent year were 60c per share.
what is the p/e ratio?
i made it as 3.72/72 to get 5.17%, is that correct? i dont have any answer scheme with me
Market Value per Share = 3.72
Earnings per Share = 0.60
Share Price / Earnings Per Share
3.72/0.60 = 6.2
Therefore, I think the PE ratio is 6.2.
