Price of a share is determined by?
-
PE/EPS
-
EPS/PE
-
(EPS/PE)*100
-
PE*EPS
D
Correct answer
Explanation
The PE ratio (Price-to-Earnings) is calculated as Price divided by EPS. Rearranging this formula gives Price = PE × EPS. This is the fundamental relationship between share price, PE ratio, and earnings per share.