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how is p/e ratio inversely related to ke ? In practical problems ques 2 how did they solve it?


Swathi Krishna

Swathi Krishna

CA Inter

7K+

15-Oct-20

29

Answers (4)

What is cost of Equity ? return % expected by shareholders . i.e Return / price x 100 = EPS / Market price x 100 = 1/(Market price / EPS) x 100 = 1/PE - hence inversely related. Not sure which practical problem you are referring to Study material, our course or RTP


Sriram Somayajula

Sriram Somayajula

Admin

16-Oct-20

Thread Starter

Swathi Krishna

icai's study material

Solved using logic explained above


Suraj Lakhotia

Suraj Lakhotia

Admin

17-Oct-20

K thax sir


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

19-Oct-20

All the Best
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