Short Qustion no1

This topic has 2 replies, 2 voices, and was last updated 10 years ago by adilmeer1986.

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December 3, 2015 at 9:53 pm #287361
adilmeer1986
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Dividend yield 8% and dividend cover 2.4
what is the P/E ratio?
Please provide working
Regards
December 3, 2015 at 11:10 pm #287372
Anonymous
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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
December 6, 2015 at 8:16 pm #288307
adilmeer1986
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thanks
i did not understand last bit
cheers
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