The companys price earnings pe number and return on equity, Financial Management

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The companys price earnings pe number and return on equity

For the year ended 31 December 2016 a company earned a profit after interest and tax of £480,000. The company’s share price is £12 per share. The following are extracts from the company’s Statement of financial position at 31 December 2016:

Ordinary share capital (50p shares) £200,000

Retained earnings £380,000

Revaluation reserve £80,000

Long-term 10% Bank loan £48,000

The company’s price earnings (PE) number and return on equity for the period were:

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