Price Earnings Ratio: The price earnings ratio shows the relationship between price of the share and earnings per share. It is calculated with the help of following formula: Price Earnings Ratio= Market price per share Earnings per share To Indicate: The Comment on the Price Earnings ratios

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Chapter 8, Problem 8.9.6MBA

To determine

Concept Introduction:

Price Earnings Ratio:

The price earnings ratio shows the relationship between price of the share and earnings per share. It is calculated with the help of following formula:

Price Earnings Ratio=Market price per shareEarnings per share

To Indicate:

The Comment on the Price Earnings ratios

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