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    Question

    The following information is available about CrismsonCoporation. Study it carefully to calculate the basic EPS for the year ended Marc,31, 2015.

    Net income = Rs. 34 lakhs

    Interest expense = Rs. 3 lakhs

    Preference Dividend = Rs. 2 lakhs

    Transfer to retain earnings = Rs. 13 lakhs

    Equity shares outstanding = 30,00,000

    A 1.07 Correct Answer Incorrect Answer
    B 0.90 Correct Answer Incorrect Answer
    C 0.87 Correct Answer Incorrect Answer
    D 1.03 Correct Answer Incorrect Answer

    Solution

    EPS = Net income – preference dividend / no. of shares outstanding EPS = (34,00,000 – 2,00,000) / 30,00,000 EPS = 1.07

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