Investor Integrity wants to buy share, P100 par value from Honesty Company. According to his research, Honesty Company’s share come with a constant dividend of P5 per share up to 2021. Investor Integrity intends to hold the share for a longer time and no plans in selling it in the future. Honesty Company sells its share for P110 per share. Investor Integrity requires a 20% return on all of his investment. In 2022, Honesty Company shows the following information (see image below). What is the price/earnings ratio of Honesty Company share?

Investor Integrity wants to buy share, P100 par value from Honesty Company. According to his research, Honesty Company’s share come with a constant dividend of P5 per share up to 2021. Investor Integrity intends to hold the share for a longer time and no plans in selling it in the future. Honesty Company sells its share for P110 per share. Investor Integrity requires a 20% return on all of his investment. In 2022, Honesty Company shows the following information (see image below). What is the price/earnings ratio of Honesty Company share?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5CE

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