The correct answer is: A. Rs. 300
The price-earnings ratio (P/E ratio) is a valuation ratio that compares a company’s stock price to its earnings per share (EPS). A high P/E ratio indicates that investors are willing to pay more for a company’s stock because they believe that the company will continue to grow its earnings at a high rate. A low P/E ratio indicates that investors are not as confident in the company’s future earnings growth.
In this case, the P/E ratio of other similar companies is 10. This means that investors are willing to pay Rs. 10 for every Rs. 1 of earnings per share. If X Co. has an EPS of Rs. 15, then its market value should be Rs. 300.
Option B is incorrect because it is the price-earnings ratio of X Co., not the market value of its shares.
Option C is incorrect because it is the price-earnings ratio of other similar companies, not the market value of X Co.’s shares.
Option D is incorrect because it is the price-earnings ratio of a company with a very low EPS.