The Market Value of One Ordinary Share in Jermaine Plc

Multiple Choice

The market value of one ordinary share in Jermaine plc is 240 pence. The profit for the latest financial year to 30 April 2019 is £17.5m after charging income tax of £4.5m. Jermaine plc has 30m preference shares of £1 each in issue and these preference shares have a dividend rate of 5%. There were 70m ordinary shares in issue throughout the financial year ended 30 April 2019. What is Jermaine plc's P/E ratio?

A) 9.60
B) 10.50
C) 12.92
D) 14.61