Dividend Per Share X 100 Market Price Per Share 4. Price Earning Ratio: this ratio tells how many times of earnings per share is the market price of the share of a company. The formula to calculate this ratio is: Market Price Per Share Earnings Per Share 12 2.2.3.13 Illustrations Illustration 4: the following are the financial statements of yesye limited for the year 2005 Rs. Balance Sheet As At 31-12-2005 Rs. Equity Share Capital 1,00,000 Fixed Assets General Reserve 90,000 Stock Profit & Loss Balance 7,500 debtors Sundry Creditors 35,000 Cash 6% Debentures 30,000 Proposed Dividends 2,72,500 1,50,000 42,500 19.000 61,000 10,000 2,72,500 Trading And Profit And Loss Account For The Year Ended 31-12-2005 Rs. To Cost Of Goods Sold 1,80,000 By Sales To Gross Profit C/D 1,20,000 Rs. 3,00,000 3,00,000 3,00,000 By Gross Profit B/D 1,20,000 To Expenses To Net Profit 1,00,000 20,000 1,20,000 1,20,000 You are required to compute the following: 1) Current Ratio 2) Acid Test Ratio 3) Gross Profit Ratio 4) Debtors' Turnover Ratio 5) Fixed Assets To Net Tangible Worth 6) Therever T. Fived Aseate