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 II is:

1.05

In this situation total fund is 30 lakhs in which 10 lakhs is debt so share capital is 20 lakhs.

         EBIT = 4,00,000 
less: Interest = 100000
         EBT = 3,00,000 (Earnings before taxes)
less: Tax = 90,000 
         EAT 2,10,000

Earning per share = EAT/ no of shares
No of shares = 20 lakhs/10
                     = 200000
EPS = 210000/200000
       = 1.05