Answer the questions on the basis of the information given below.

Company X
TOTAL FUND USED = 30 LAKHS

 Choose the correct answer from the options given below:

The Earning Per Share (EPS) for situation I is:

0.93

The correct answer is option 1- 0.93.

In situation I, there is no debt in total ₹30 lakh funds so there is no interest payment.

         EBIT = 4,00,000 
less: Interest = NIL
         EBT 4,00,000 (Earnings before taxes)
less: Tax 1,20,000 (4,00,000 X 30/100)
         EAT 2,80,000

Earning per share = EAT/ no of shares
No of shares = 30 lakhs/10
                   = 3,00,000
EPS = 2,80,000/3,00,000
       = 0.93