From the following information calculate Price Earning ratio:

Equity Shares of 10 each - 70,000
Net profit after tax before dividend - ₹1,75,000
Market price of share ₹13
Dividend declared @ 15%

5.2

The correct answer is Option (3) → 5.2

Price earning ratio = Market price of a share/Earnings per share
                            = 13/2.5
                            = 5.2

Earning per share = Profit available for Equity Shareholders / Number of Equity Shares
                          = 175000/70000
                          = 2.5