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    Question

    The net profit of a company is 2,00,000, preference dividend € 25,000, and taxes paid 15,000. The number of equity shares is 1,00,000. The earnings per share (EPS) is

    A 1.5 Correct Answer Incorrect Answer
    B 1.6 Correct Answer Incorrect Answer
    C 2 Correct Answer Incorrect Answer
    D 1.75 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Net Profit                                                                       2,00,000 (-) Tax                                                                             (15,000) (-) Preference dividend                                                   (25,000) Profit available for equity shareholder                           1,60,000 Earnings per share (EPS):                                                = 1,60,000 = 1.6 per share

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