Question

A pension fund manager observes that a listed company has issued a 1:4 bonus share –
i.e. 25% bonus credited from reserves. Pre-bonus EPS was ₹40 and reserves were ₹200 crore. Post-issue, what is the adjusted EPS?

A ₹32
B ₹40
C ₹25
D ₹30
E ₹35
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