What is PE ratio MCQ

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August 28, 2015 at 8:24 am #268897
clss
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Hi

Please can you show the working for. The market value per share $3.20.Dividend cob=ver 3.0 and div yield is 4%. what is PE ratio?
August 28, 2015 at 9:04 am #268910
John Moffat
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In future you must ask in the Ask the Tutor Forum if you want me to answer. This forum is for students to help each other.

Dividend = 4% x 3.20 = 0.128

Earnings per share = 3.0 x 0.128 = 0.384

Therefore PE ratio = 3.20 / 0.384 = 8.33
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