Answer Posted / sk pasha
Price- Earning Ratio:- it expresses the relationship between
market price of one share of a company and the earnings per
share of that company. It's calculated as
Market price of Equity share
----------------------------
EPS
Profit after tax - Preference Dividend
here EPS = ---------------------------------------
Number of Equity Shares
(OR)
The P/E Ratio has a lot of practical application in
forecasting the market price of a share. there is no ideal
P/E Ratio.
The inverse of the P/E ratio is called the Earning yield.
It's calculated as
1 E.P.S
---------- or ----------------
P/E ratio Market Price
| Is This Answer Correct ? | 2 Yes | 1 No |
Post New Answer View All Answers
what you mean by cross dunning
What is Merchandising Accounting process
Accounting related interview questions on ibm
Expand---------TDCB
What is Accounting on Computers
what is internal audit
We are running an educational institution in Karnataka,India. Is there any ceiling stating that if gross salary is upto this then only incentive or bonus can be paid?
Why we reconcile our debtors? what steps we taken during reconciliation.
what do u mean by arrear basic or arrear hra?
What type of questions are asked for Interview of Manager Finance in Airport Authority of India ?
what is Derivative Documentation,Derivative Settlements,Derivative confirmation?
what is Sums on Finalization of Accounts?
Whether the TIN and CST no. remain same for a firm in M.P. state. If a firm ask for CST but having only TIN no. is it correct to entertain his invoice?
What is the GDP growth?
What is the definition of LOSS. Give the formula if any.
