Two banks Fuddy and Guddy has the same number of outstanding shares, equity capital, dividend and earning. But the Market price of Fuddy is 1800 and of Guddy is 600. Which of the following is true?

Question

PYQPulse · Accepted Answer

A. P/E of one is Higher than the other

Two banks Fuddy and Guddy has the same number of outstanding shares, equity capital, dividend and earning. But the Market price of Fuddy is 1800 and of Guddy is 600. Which of the following is true?

Answer: A. A. P/E of one is Higher than the other