Day: March 29, 2023

Accounting Multiple Choice Question – 29 March 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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An ordinary share in Alex plc, which is a quoted company has a nominal value of £0.50.

The latest financial statements show earnings per share of £0.10 and a price-earnings ratio of 15.

What is the market value of an ordinary share in Alex plc?

Select ONE answer:

  1. £0.50
  2. £1.50
  3. £2.00
  4. £2.50

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 2

  1. Not correct
  2. Correct – PE= Share Price / EPS == > 15 = x / £0.10 == > 15 / 0.10 = £1.50
  3. Not correct
  4. Not correct

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