Site navigation

The market value of equity shares is __________ multiplied by the price-earnings ratio.

Earnings per share multiplied by the price-earnings ratio gives the market price per share. The relationship follows directly from the definition of the price-earnings ratio…

Choose your answer

The market value of equity shares is __________ multiplied by the price-earnings ratio.

Select one answer
Answer and explanation

Correct answer C

Earnings per share multiplied by the price-earnings ratio gives the market price per share. The relationship follows directly from the definition of the price-earnings ratio as market price divided by EPS.

Practice for these exams

  • Telangana SET (TG SET)

Related question papers

Related exam syllabi

Related questions in this topic