The average market price of Lavendar Ltd's ordinary shares is $5.40 and the earnings per ordinary share are 90c. The P/E ratio is:
A) 6.0
B) 4.86
C) 16.67
D) unable to be calculated from the information provided.

Question

Quizplus · Accepted Answer

The P/E ratio is calculated by dividing the market price per share by the earnings per share (EPS). Here, it's $5.40 / $0.90 = 6.0.

The Average Market Price of Lavendar Ltd's Ordinary Shares Is