Multiple Choice Questions on Market price of equity shares of a company is Rs 20 and earning per equity share is Rs 2 and then ra........... for Punjab Government (Allied) Exams Preparation

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Multiple Choice Questions

Market price of equity shares of a company is Rs 20 and earning per equity share is Rs 2 and then ra...........

Finance( Revenue Account ) Cost of capital
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    Market price of equity shares of a company is Rs. 20 and earning per equity share is Rs. 2, and then rate of capitalisation will be:

     

    40

     

    Incorrect Answer

    10 

     

    Correct Answer

    20

     

    Incorrect Answer

    None of above

     

    Incorrect Answer
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    Explanation:

    Capitalisation rate is also known as P/E rate which is MPS/EPS   x 100

            So, in the given problem Capitalisation Rate = 20/2 = 10 

    By: Vikas Goyal
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