The correct answer is A. 8.57 times.
Price-to-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 a lot for each unit of earnings, while a low P/E ratio indicates that investors are less willing to pay for each unit of earnings.
To calculate the P/E ratio, divide the stock price by the EPS. In this case, the stock price is Rs 30 and the EPS is Rs 3.5. Therefore, the P/E ratio is 8.57 times.
Option B is incorrect because it is the percentage of earnings that a company pays out as dividends.
Option C is incorrect because it is the reciprocal of the P/E ratio.
Option D is incorrect because it is the percentage of earnings that a company retains.