Vidyalelo
Commerce · Q281

Financial Management

Graduate and Post Graduate · Commerce · question 281

Q281

Price per share is Rs 25 and cash flow per share is Rs 6 then price to cash flow ratio would be

A.
0.24 times
B.
4.16 times
Answer
C.
4.16%
D.
24.00%

Answer: Option B

Solution

Answer: Option B
Solution:
Price to cash flow ratio = Price per share ÷ Cash flow per share = Rs. 25 ÷ Rs. 6 = 4.16 times