Given net profit Rs. 1,50,000, preference dividend Rs. 25,000 taxes Rs. 10,000, Equity capital (Rs.10 each), Rs.10,00,000 what is the Earning per share (EPS)–
(A) Rs. 1.50
(B) 0.25
(C) Rs. 1.15
(D) Rs. 1.75
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Ans. rs 1.75
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Answer:
EPS = Net profit available to Equity Share holders / No. of Equity Shares
= 1,25,000 / 1,00,000 = Rs.1.25
Working :-
Net Profit means Profit after tax
Net profit available to Equity Share holders = Net Profit minus Preference Dividend = 1,50,000 - 25,000 = 1,25,000
No. of Equity Share = 10,00,000 / 10 = 1,00,000
Step-by-step explanation:
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