Question

A pension fund manager observes that a listed company

Q: Answer-A pension fund manager observes that a listed company has issued a 1:4 bonus share – i.e. 25% bonus...

Bonus increases shares by 25, diluting EPS.

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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A pension fund manager observes that a listed company

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