The formula of Price-Earning Ratio is:

CS Executive · Corporate and Management Accounting · PYQS · June 2023

(A) Yield per share/Normal rate of return × 100

(B) Rate of earning/Normal rate of return × 100

(C) Market value per share/Earning per share

(D) Possible rate of dividend × Paid up value per share/Normal rate of dividend

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Valuation of Shares