A company has an authorised share capital of 750 000 ordinary shares of $1 of which it

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A company has an authorised share capital of 750 000 ordinary shares of $1 of which it has issued 500 000 shares. The following is an extract from its Profit and Loss Account.

The current market price of the shares is $3.60. What is the price earnings ratio?

A. 5.29

B. 7.5

C. 8

D. 11.25

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Accounting A Level And AS Level

ISBN: 9780521539937

1st Edition

Authors: Harold Randall

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Question Posted: Aug 28, 2023 01:37 PM

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A company has an authorised share capital of 750 000 ordinary shares of $1 of which it

Question:

Operating profit Debenture interest Transfer to general reserve ne Ordinary dividend Retained profit 400 000 (60 000) 340 000 (100 000) (200 000) 40 000

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To calculate the price earnings ratio we need to fi...View the full answer

Accounting A Level And AS Level

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