A companys equity shares are being traded in the market at Rs.48 per share with a price-earning

Fantastic news! We've Found the answer you've been seeking!

Question:

A company’s equity shares are being traded in the market at Rs.48 per share with a price-earning ratio of 8. The company’s dividend payout is 80%. It has 1,00,0000 equity shares of Rs.10 each and no preference shares. Book value per share is Rs.40. Calculate:

i). Earnings per share.

ii). Net income.

iii). Dividend yield.

iv). Return on equity.