n NISM Certifications
XV NISM Series XV
Medium

If the Price-to-Book (P/B) ratio of a company is 4 and its book value per share is Rs. 15, what is its market price per share?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs. 15

  2. Rs. 60

    Correct answer

  3. C

    Rs. 45

  4. D

    Rs. 30

Why this is the answer

Market Price = P/B × Book Value per Share = 4 × 15 = Rs. 60. Other options do not correctly multiply P/B by book value.

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