price earning ratio

PE = MV/EPS = (Divi/0.08) / (2.4 x Divi) = (Divi x 12.5) / (2.4 x Divi) If you divide top and bottom by Divi, you get PE = 12.5/2.4 = 5.12

Ohk, thank you so much :D

You are welcome :-)

market value per share 3.20 dividend cover is 3 and dividend yield 4 % what is p/e ratio

Dividend = 4% x 3.20 = 0.128 EPS = 3 x 0.128 = 0.384 PE = 3.20 / 0.384 = 8.33

sir kindly explain where u take 12.5 in p/e ratio dividend yield 8% divided cover 2.4 so how calculate 12.4 ?

1 divided by 0.08 (dividend yield percentage) is 12.5, and this represents the Market Value in the equation

cant undestand where you take 1 in dividend yield % ?

well dividend yield is percentage of dividend divided by share price isn't it? so the dividend yield is effectively 8/100 or 0.08/1. to find the share price you just flip it so its 1/0.08 or 100/8 which is 12.5 and you use this figure in the P/E equation

ok thanks a lot

You are welcome :-)