From the following information, Calculate EPS of the following company.

Total funds to be raised = ₹30 lakhs
Interest rate on debt = 10% p.a.
Face value of equity shares = ₹10 each
Tax rate = 30%
EBIT= ₹2 lakhs
Amount of loan = ₹10 lakhs

₹0.35

The correct answer is option 1- ₹0.35.

Total fund = 30,00,000
Loan = 10,00,000
Remaining = 30,00,000 - 10,00,000
                = ₹20,00,000

Share value = ₹20,00,000
Per value of a share = 10
Total no of shares = 20,00,000/10
                              = 2,00,000

EPS = EAT/Total no of shares
       = 70,000/2,00,000
       = ₹0.35