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  • 1.  Formula - P / E Ratio

    Posted 02-15-2019 11:46 PM

    Dear Fellows,

    May somebody please have a look on the attached Questions and let me know whether to calc. the Price Earning ratio the formula should be:

    Market price per share/Basic Earning per Share                            or

    Market price per share/Diluted Earning per Share

    I bit confused because Gliem and Hock used dif. formula



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    EMERSON GEORGE
    SENIOR Accountant
    KUWAIT
    Kuwait
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  • 2.  RE: Formula - P / E Ratio

    Posted 02-20-2019 10:40 AM
    I'm not sure why Hock has the diluted EPS unless there was a question that involved dilutive potential common stock.  I would check that...do you have the question you are referring to?

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    Leigh Dishman
    Accountant
    Plano TX
    United States
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    Original Message