Read the following information carefully and answer the question.
The Balance Sheet of ABC Ltd as on 31 March 2022:
| Liabilities | Amount (₹) |
Asset | Amount (₹) |
| Share Capital Equity (₹10) | 4,00,000 | Fixed Assets | 9,50,000 |
| 12% preference shares | 1,00,000 | Current Assets | 2,34,000 |
| General Reserve | 1,84,000 | ||
| 10% Debentures | 4,00,000 | ||
| Current Liabilities | 1,00,000 | ||
| 11,84,000 | 11,84,000 |
Additional information :
1. Market price of share = 34
2. Net profit after tax = 1,50,000
3. Tax = 50,000
Earning Per Share (EPS) will be :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹3.45
EPS = Profit available for equity shareholders ÷ Number of equity shares
Preference dividend = 12% of ₹1,00,000 = ₹12,000
Profit available for equity shareholders = ₹1,50,000 − ₹12,000 = ₹1,38,000
Number of equity shares = ₹4,00,000 ÷ ₹10 = 40,000
EPS = ₹1,38,000 ÷ 40,000 = ₹3.45
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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