Question

Calculate the earnings per share (eps) for a company that earned rs 100,000 last year in after tax – profits, has 200,000 common share outstanding and rs 1.2 million in retained earnings at the year end

Answer 1

The earning per share is 0.50 per share

Answer 2

rs 0.50 per share

Explanation:

Given:

Profit After tax during the year = 100,000

Outstanding Common Share = 200,000

Retained earnings During the year = 1,200,000

Earnings Per Share = ?

Computation of Earnings Per Share :

Earnings Per Share = Profit After tax during the year / Outstanding Common Share

= 100,000 / 200,000

= rs 0.50

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