Answer to Question #266144 in Financial Math for kim

Question

Assuming that the market price of the shares at 31^st May 2018 is £1.40, what is the Price/Earnings figure?

Answer 1

Price earning ratio(P/E)=$\frac{market share price}{earnings per share}$

We are given market share price as $\ £1.40$ ,so we let earnings per share be x.

$\therefore$ price earning figure(P/E)=$\frac{\ £1.40}{x}$