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Following is the information related to Larsen & Turbo Ltd. i). Future maintainable profits after taxes $7,800,000 (ii). The company has 100,00010% Preference shares of
Following is the information related to Larsen \& Turbo Ltd. i). Future maintainable profits after taxes $7,800,000 (ii). The company has 100,00010% Preference shares of $100 each, fully paid up. (iii). The company has 400,000 Equity shares of $100 each, fully paid up. (iv). The P/E ratio is 10.50 times. Based on the above information the market price per equity share based on future earnings of Larsen \& Turbo Ltd is a. $138 b. $34 c. None of the above d. $134
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