An equity listing contains the following information: P/E 17.5, closing price 33.10, dividend .80, YTD% chg 3.4, and net chg -.50.Which of the following statements are correct given this information?
I.The share price has increased by 3.4% during the current year.
II.The closing price on the previous trading day was €32.60.
III.The earnings per share are approximately €1.89.
IV.The current yield is 17.5%.
A)I and II only.
B)I and III only.
C)II and III only.
D)III and IV only.
E)I, III, and IV only.

Question

Quizplus · Accepted Answer

- Statement I is correct as the YTD% chg is given as 3.4, which means the share price has increased by 3.4% during the current year.
- Statement II is incorrect as there is no information given about the previous trading day's closing price.
- Statement III is correct as the P/E ratio is given as 17.5, and the closing price is given as 33.10, we can calculate the earnings per share as 33.10/17.5 = €1.89 (rounded off).
- Statement IV is incorrect as the P/E ratio is given as 17.5 and not the current yield.

An Equity Listing Contains the Following Information: P/E 17