The following data relates to banks and other companies in India Price P/E Ratio Dividend (Rs.) (times) Company Current Debit- Yield ( %) Ratio Equity Ratio Banks City Union Bank Allahabad Bank Syndicate Bank Karnataka Bank 117 4.72 3.42 2.34 0.26 83 5.55 4.79 4.3 0.38 77 7.26 3.24 3.12 0.78 5.95 2.07 110 7.64 2.71 0.16 Tata Investment Corporation 385 7.71 3.11 0.01 South Indian Bank 69 7.98 2.62 5.15 0.31 Andhra Bank 90 8.41 3.91 3.3 0.48 Others SCI 0.32 0.31 155 4.62 5.47 2.9 Deepak Fertilizers & Petrochemicals 87 9.41 3.43 2.24 NIIT Technologies 191 10.16 3.14 2.59 0.2 Electrosteel Castings 401 10.48 3.12 2.87 0.51 JB Chemicals & Pharma 98 11.46 2.65 2.76 0.28 a. Calculate the average share price of banks. b. Calculate average current ratio of banks and other companies c. Compare the variation of price for banks and other companies

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The following data relates to banks and other companies in India
P/E Ratio
(Rs.) (times)
Company
Price
Dividend
Current
Ratio
Debit-
Yield ( %)
Equity
Ratio
Banks
City Union Bank
Allahabad Bank
Syndicate Bank
Karnataka Bank
117
4.72
3.42
2.34
0.26
83
5.55
4.79
4.3
0.38
77
7.26
3.24
3.12
0.78
110
7.64
2.71
5.95
0.16
Tata Investment Corporation
385
7.71
3.11
2.07
0.01
South Indian Bank
69
7.98
2.62
5.15
0.31
Andhra Bank
90
8.41
3.91
3.3
0.48
Others
SCI
155
4.62
5.47
2.9
0.32
Deepak Fertilizers & Petrochemicals
87
9.41
3.43
2.24
0.31
NIIT Technologies
191
10.16
3.14
2.59
0.2
Electrosteel Castings
401
10.48
3.12
2.87
0.51
JB Chemicals & Pharma
98
11.46
2.65
2.76
0.28
Calculate the average share price of banks.
b.
а.
Calculate average current ratio of banks and other companies
c. Compare the variation of price for banks and other companies
d. Discuss the variability in Price/ Earnings ratio of Banks and other companies.
Transcribed Image Text:The following data relates to banks and other companies in India P/E Ratio (Rs.) (times) Company Price Dividend Current Ratio Debit- Yield ( %) Equity Ratio Banks City Union Bank Allahabad Bank Syndicate Bank Karnataka Bank 117 4.72 3.42 2.34 0.26 83 5.55 4.79 4.3 0.38 77 7.26 3.24 3.12 0.78 110 7.64 2.71 5.95 0.16 Tata Investment Corporation 385 7.71 3.11 2.07 0.01 South Indian Bank 69 7.98 2.62 5.15 0.31 Andhra Bank 90 8.41 3.91 3.3 0.48 Others SCI 155 4.62 5.47 2.9 0.32 Deepak Fertilizers & Petrochemicals 87 9.41 3.43 2.24 0.31 NIIT Technologies 191 10.16 3.14 2.59 0.2 Electrosteel Castings 401 10.48 3.12 2.87 0.51 JB Chemicals & Pharma 98 11.46 2.65 2.76 0.28 Calculate the average share price of banks. b. а. Calculate average current ratio of banks and other companies c. Compare the variation of price for banks and other companies d. Discuss the variability in Price/ Earnings ratio of Banks and other companies.
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