Graham Plc Has the Following Information for the Year to 30

question 1

Multiple Choice

Graham plc has the following information for the year to 30 June:
Profit for the year : £4.2m
Ordinary dividend paid : £1.8m
Number of ordinary shares : 18m
Market price at 30 June : £2.90
Calculate price to earnings for Graham Plc as at 30 June.

• A) 1 time
• B) 12 times
• C) 22 times
• D) 29 times

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Definitions:

Liabilities

Debts or economic duties a business has to external parties, requiring repayment through the exchange of money, goods, or services over a period.

Assets

Resources owned by a company or individual that have economic value or potential to provide future benefits.

Net Loss

The amount by which total expenses exceed total revenues for a specific period, indicating a negative financial performance.

Revenues

The entirety of income that comes from a company's central business operations, like sales of products and services.