Forums
Dividend decisions
Financial Management
Why can't we find mps by multiplying eps and PE ratio. If done so , the answer is different from book answer.
Answers (9)
CA Suraj Lakhotia Admin
Both method will give a different price.
Ok sir, Thank you sir. Sir but which one is correct sir.
Thread Starter
Umayal LakshmananOk sir, Thank you sir. Sir but which one is correct sir.
ICAI concept in this regard is not the most appropriate - what you said about MPS = EPS x PE is how real the world functions ICAI method of Ke = 1/PE is illogical - I have explained this in CA final SFM too But if you have to get marks pls follow ICAI even though you know what you are doing may not be right
Courses
Course Guides
Offerings
CIN: U74999TG2017PTC116012 | GSTIN: 36AAECI4332C1Z0 | PAN: AAECI4332C