Mathematics · Financial Mathematics
Alfreda Co has 200 million ordinary shares in issue and earnings attributable to ordinary shareholders of $90m. Otis Co has 550 million ordinary shares in issue, an earnings per share (EPS) of $0.25, and a market capitalisation of $2,750m. What is the value of an ordinary share in Alfreda Co using Otis Co's price/earnings (P/E) ratio?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$4.00
- 2$9.00✓
- 3$6.75
- 4$12.00
Correct answer
$9.00
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