P6-2. LMVL Co., a publicly listed company, reported earnings for the year amounting to Php25 Million with outstanding shares of 1 Million. The market value per share of LMVL Co. is Php122. What the P/E Ratio of LMVL Co. (round your answer to the nearest ones)? Suppose that LMVL Co. sets as the industry leader, LVVL Co. another player in the same industry is being eyed by an investor. The reported EPS of LVVL Co. is Php10. If the investor is aware of the LMVL Co.'s performance, how much should the investor value LVVL Co.?

P6-2. LMVL Co., a publicly listed company, reported earnings for the year amounting to Php25 Million with outstanding shares of 1 Million. The market value per share of LMVL Co. is Php122. What the P/E Ratio of LMVL Co. (round your answer to the nearest ones)? Suppose that LMVL Co. sets as the industry leader, LVVL Co. another player in the same industry is being eyed by an investor. The reported EPS of LVVL Co. is Php10. If the investor is aware of the LMVL Co.'s performance, how much should the investor value LVVL Co.?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

P6-2. LMVL Co., a publicly listed company, reported earnings for the year
amounting to Php25 Million with outstanding shares of 1 Million. The market
value per share of LMVL Co. is Php122. What the P/E Ratio of LMVL Co.
(round your answer to the nearest ones)?
Suppose that LMVL Co. sets as the industry leader, LVVL Co. another
player in the same industry is being eyed by an investor. The reported EPS
of LVVL Co. is Php10. If the investor is aware of the LMVL Co.'s
performance, how much should the investor value LVVL Co.?

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