Brilliant and Diamond Plc Is a Listed Company with a Market

Multiple Choice

Brilliant and Diamond plc is a listed company with a market capitalization at 31 December 20X6 of £9 996 000.The company has ordinary share capital of 1.2 million ordinary shares and preference share capital of 0.3 million.Profit before tax was £583 000 and profit after tax (after deduction of preference dividend but before ordinary dividend) was £402 000.Ordinary dividends paid in the year were £120 000. What was the company's price/earnings ratio at 31 December 20X6 (to one decimal place) ?

A) 24.9
B) 17.1
C) 19.9
D) 13.7