Gujarat Bijali Ltd has earnings of Rs 80 crore and it has 5 crore shares outstanding. It has a project that will produce net earnings of Rs 20 crore after one year. Thereafter, earnings are expected to grow at 8 per cent per annum indefinitely. The companys required rate of return is 12.5 per cent. Find the P/E ratio.

Answer rating: 100% (QA)

Earnings per Share can be computed as Earnings Shares O... View the full answer