Read the following information and answer the question.

Company XYZ Ltd.
TOTAL FUND USED = 50 LAKHS

Calculate earning per share in situation I.

₹0.8

The correct answer is option 4- ₹0.8.

In situation I, there is no debt in total ₹50 lakh funds so there is no interest payment.

         EBIT = 5,00,000 
less: Interest = NIL
         EBT 5,00,000 (Earnings before taxes)
less: Tax 1,00,000 (5,00,000 X 20/100)
         EAT 4,00,000

Earning per share = EAT/ no of shares
No of shares = 50 lakhs/10
                   = 5,00,000

EPS = 4,00,000/5,00,000
       = 0.8