Question

    The net profit of a company is 2,00,000, preference

    dividend € 25,000, and taxes paid 15,000. The number of equity shares is 1,00,000. The earnings per share (EPS) is -
    A 1.5 Correct Answer Incorrect Answer
    B 1.6 Correct Answer Incorrect Answer
    C 2 Correct Answer Incorrect Answer
    D 1.75 Correct Answer Incorrect Answer

    Solution

    Net Profit2,00,000 (-) Tax(15,000) (-) Preference dividend(25,000) Profit available for equity shareholder 1,60,000 Earnings per share (EPS): = 1,60,000 = 1.6 per share

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