Question

nominal value of shares 10,number of shares 10000,total net profit 20000,dividend paid 10% then what is earning per share​

Answer 1

Profit of nominal value 100

Answer 2

Earning per share = rs 1

Explanation:

Given:

Number of share = 10,000

Value of per share = 10

Net profit = 20,000

Dividend paid = 10%

Computation:

Dividend Paid = (Value of share x number pf share) x Dividend paid %

= (10 x 10,000) x 10%

= 1,00,000 x 10%

= 10,000

Earning per share = (Net Profit - Dividend paid) / number of share

= (20,000 - 10,000) / 10,000

= 10,000 / 10,000

Earning per share = rs 1

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