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