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    Question

    A company reports an Earnings Before Interest and Tax

    (EBIT) of ₹6,00,000. It pays annual interest of ₹1,00,000 on its borrowings. The applicable corporate tax rate is 30%. The company has 50,000 equity shares outstanding. You are required to calculate the Earnings Per Share (EPS).
    A ₹6 Correct Answer Incorrect Answer
    B ₹8.4 Correct Answer Incorrect Answer
    C ₹7 Correct Answer Incorrect Answer
    D ₹7.2 Correct Answer Incorrect Answer
    E ₹6.8 Correct Answer Incorrect Answer

    Solution

    The correct answer is C

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