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) isSolution
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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Statements:
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