Based on the case study details provided, calculate the Price/Earnings (P/E) Ratio: - Accountancy MCQ CUET Accountancy 2025 14 May Shift 2 2026 | ExamTest.live | ExamTest.live

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1 mark

Based on the case study details provided, calculate the Price/Earnings (P/E) Ratio:

A $8.94 Times$
B $9.14 Times$
C $9.86 Times$
D $8.24 Times$

Solution & Step-by-step Explanation

1. Identify the variables: Market Price per Share (MPS) = Rs. 34 Earnings Per Share (EPS) = 3.45 (Calculated in Question 42) Calculate the Price Earnings (P/E) Ratio: P/E Ratio = \frac{Market Price per Share (MPS)}{Earnings Per Share (EPS)} P/E Ratio = \frac{34}{3.45} \approx 9.855 Times \approx 9.86 Times

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Based on the case study details provided, calculate the Price/Earnings (P/E) Ratio:

A

8.94 Times

B

9.14 Times

C

9.86 Times

D

8.24 Times

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Financial Statements Ratios Price Earnings Ratio

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