From the following information calculate (i) Earning per share
(iI) Price earning ratio
Particulars (Rs.)
70,000 equity shares of Rs. 10 each 7,00,000
Net Profit after tax but before dividend 1,75,000; Market price of a share 13
Dividend declared @15%
Earning per share = Profit available for Equity Shareholders/Number of Equity Shares =Rs. 1,75,000/Rs70,000 =2.50 Price Earning Ratio = Market Price per share/EPS = 13/2.5 = 5.2
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