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Question - Gary's Goods recorded a net profit of £250,000 in their income statement for the current financial year. They have 5,000 ordinary shares in issue. They paid out £15,000 in dividends to preference shareholders, and declared an ordinary share dividend of £30,000 during the year. Ordinary shares in Gary's Goods are trading at a market price of £80 per share, while preference shares are trading at a price of £40 per share. What is the price earnings ratio for Gary's Goods for the financial year?
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