Inis question: 12 pis possible The following information applies to Tops Ltd. for the year ended 31 December 20X8: 11,200 77,000 Profit after interest and tax () Number of shares in issue Total dividends for year () Market value per share (pence) Profit before interest and tax () 3,421 137 31,900 Requirement: Compute the price/earnings (PE) ratio for Tops Ltd. for 20X8. First, calculate the earnings per share (EPS) for the company as follows: (Show your answer in pence, to two decimal places.) Profit after interest and tax EPS pence Number of ordinary shares Next you can calculate the price/earnings ratio. PE Ratio The calculation of the price/earnings ratio for Tops Ltd. is: (Show your answer in 'times', to two decimal places.) PE ratio times 14.55 You are informed that the company's PE ratio on 31 December 20X8 was three times as high as the figure calculated at 31 December 20x7. Which one of the following statements is correct? O A. The company has definitely issued more shares in this year. B. The stock market appears to be more confident about the company's future. OC. The company has definitely not earned any more profit during this year. OD. The stock market appears to be less confident about the company's future. Time Remaining: 01:10:56 Next