Q # 51 - How much a
company would have
earning per share if the
company has Rs. 250
million in earnings and
have 20 million shares?
A.
Rs. 125
B.
Rs. 12.5
C.
Rs. 120.50
VIS
D. Rs. 1250
Answers
Answer:
your answer is part c .............
Step-by-step explanation:
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Answer: EPS = Total Earnings / Number of Outstanding Shares
= Rs. 250 million / 20 million
= Rs. 12.5
Step-by-step explanation:
To calculate the earnings per share (EPS) of a company, we divide the total earnings by the number of outstanding shares. In this case, the company has earnings of Rs. 250 million and 20 million shares. So, the EPS can be calculated as follows:
EPS = Total Earnings / Number of Outstanding Shares
= Rs. 250 million / 20 million
= Rs. 12.5
Therefore, the answer is option B, Rs. 12.5. This means that for each share of the company, the earnings are Rs. 12.5. This metric is important for investors as it gives them an idea of how much profit the company is generating per share. It is one of the key indicators of a company's financial health and is often used to compare the performance of different companies in the same industry. A higher EPS is generally considered to be a good sign, as it indicates that the company is generating more profits for its shareholders.
Learn more about EPS :
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