Company ABC Inc. Market price of equity share= $5 12,000 equity shares issued @$4 each. Company also issued 13,000 equity shares @$6 each. Calculate P/E Ratio Company DEF Inc. Market price of equity share - $8 10,000 equity shares issued @$4.5 each. Company also issued 15,000 equity shares @$2 each. Calculate P/E Ratio As a Financial Analyst, Compare the financial position of both companies

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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corporate finance.   

Company ABC Inc.
Market price of equity share= $5
12,000 equity shares issued @$4 each. Company also issued 13,000 equity shares
@$6 each.
Calculate P/E Ratio
Company DEF Inc.
Market price of equity share $8
10,000 equity shares issued @$4.5 each. Company also issued 15,000 equity
shares @$2 each.
Calculate P/E Ratio
As a Financial Analyst, Compare the financial position of both companies.
Transcribed Image Text:Company ABC Inc. Market price of equity share= $5 12,000 equity shares issued @$4 each. Company also issued 13,000 equity shares @$6 each. Calculate P/E Ratio Company DEF Inc. Market price of equity share $8 10,000 equity shares issued @$4.5 each. Company also issued 15,000 equity shares @$2 each. Calculate P/E Ratio As a Financial Analyst, Compare the financial position of both companies.
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