Day: February 7, 2023

Alex plc has ordinary shares with a nominal value of £10 each and a current market price of £20 each.

Earnings per share is £0.50, and dividend per share is £0.20.

What is the price earnings ratio?

Select ONE answer:

1. 20
2. 40
3. 50
4. 100

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct- £20 / £0.5 = 40
2. Not correct
3. Not correct
4. Not correct

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