The capitalization rate of a company whose market price per share is Rs.28, net income is Rs.20 lakhs and the number of outstanding shares is 5.6 lakh is _____________.

0.039

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0.078

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0.127

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0.156

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0.254

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Solution

The correct option is D 0.127
Capitalization rate = earning per share / market price of the share
Earnings per share = 20 lakh / 5.6 lakh = Rs. 3.5714 per share.

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The capitalization rate of a company whose market price per share is Rs.28, net income is Rs.20 lakhs and the number of outstanding shares is 5.6 lakh is _____________.

The correct option is D 0.127Capitalization rate = earning per share / market price of the shareEarnings per share = 20 lakh / 5.6 lakh = Rs. 3.5714 per share.

The correct option is D 0.127
Capitalization rate = earning per share / market price of the share
Earnings per share = 20 lakh / 5.6 lakh = Rs. 3.5714 per share.