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
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
Section: Chapter Questions
Problem 1PS
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Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff77a5ae6-19d8-4c23-a68d-d94922e40a08%2F304c2da3-157f-4909-a503-2254ea3e639d%2F490yvdr_processed.jpeg&w=3840&q=75)
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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