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FMShort Qustion no1

Aadilmeer198610y ago
Dividend yield 8% and dividend cover 2.4 what is the P/E ratio? Please provide working Regards
((deleted)10y ago#1
Div yield = DPS/Price Div cover = EPS/DPS Div Yield x Div cover = D/P x E/D = E/P = 0.08 x 2.4 = 0.192 Inverse of E/P (earnings yield) = P/E 0.192 to P/E = 1/0.192 = 7.44 Cheers Alex
Aadilmeer198610y ago#2
thanks i did not understand last bit cheers
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