{"id":50959,"date":"2024-04-15T23:17:53","date_gmt":"2024-04-15T23:17:53","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=50959"},"modified":"2024-04-15T23:17:53","modified_gmt":"2024-04-15T23:17:53","slug":"if-earnings-price-e-p-ratio-is-0-05-and-earnings-per-share-eps-is-rs-8-the-market-price-of-the-share-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-earnings-price-e-p-ratio-is-0-05-and-earnings-per-share-eps-is-rs-8-the-market-price-of-the-share-will-be\/","title":{"rendered":"If Earnings-Price (E-P) ratio is 0.05 and Earnings Per Share (EPS) is Rs. 8 the market price of the share will be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;40&#8243; option2=&#8221;100&#8243; option3=&#8221;160&#8243; option4=&#8221;0.4&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. 40.<\/p>\n<p>The Earnings-Price (E-P) ratio is a measure of the valuation of a company&#8217;s stock. It is calculated by dividing the company&#8217;s earnings per share (EPS) by its market price per share. A high E-P ratio indicates that investors are willing to pay a premium for the company&#8217;s stock, while a low E-P ratio indicates that investors are not willing to pay a premium for the company&#8217;s stock.<\/p>\n<p>In this case, the E-P ratio is 0.05 and the EPS is Rs. 8. This means that the market price of the share is Rs. 40.<\/p>\n<p>Option B is incorrect because it is the EPS, not the market price of the share.<\/p>\n<p>Option C is incorrect because it is twice the market price of the share.<\/p>\n<p>Option D is incorrect because it is one-twentieth the market price of the share.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;40&#8243; option2=&#8221;100&#8243; option3=&#8221;160&#8243; option4=&#8221;0.4&#8243; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-50959","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If Earnings-Price (E-P) ratio is 0.05 and Earnings Per Share (EPS) is Rs. 8 the market price of the share will be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-earnings-price-e-p-ratio-is-0-05-and-earnings-per-share-eps-is-rs-8-the-market-price-of-the-share-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If Earnings-Price (E-P) ratio is 0.05 and Earnings Per Share (EPS) is Rs. 8 the market price of the share will be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;40&#8243; 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