Question 156345
if p/e = mv/eps and eps remains the same, then .....

(1.2 * mv)/eps = 1.2 * (mv/eps) = 1.2 * (p/e) since (p/e) = (mv/eps) by definition.

putting in numbers................

assume mv = 100 and eps = 10.

then p/e = 100/10 = 10.

1.2 * p/e = 1.2 * 10 = 12.

similarly mv = 100 so 1.2 * mv = 120.

mv / eps = 120 / 10 = 12 = p/e as calculated above.