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Options
- A
Rs. 20
- B
Rs. 9
-
Rs. 12
Correct answer
- D
Rs. 10
Why this is the answer
EPS = 3,60,000 ÷ 6,00,000 = ₹0.60. Book value per share = EPS ÷ ROE = 0.60 ÷ 0.20 = ₹3. Market price = Book value ÷ 25% = 3 ÷ 0.25 = ₹12.
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