Answer the questions from the passage-

Following information is provided about a Firm:
Share Capital:

Equity (Rs.10) Rs. 4,00,000
12% Preference Rs. 1,00,000
General Reserve Rs. 1,84,000
10% Debentures Rs. 4,00,000
Current Liabilities Rs. 1,00,000
Fixed Assets Rs. 9,50,000
Current Assets Rs. 2,34,000

The market price of the share is Rs. 34 and the net profit after tax was Rs. 1,50,000, and the tax had amounted to Rs. 50,000.

EPS (Earning per share)-

3.45

The correct answer is Option (2) → 3.45

Given:

• Net Profit after Tax = ₹1,50,000

• Tax = ₹50,000

• Preference share capital = ₹1,00,000 @ 12% → Dividend = ₹12,000

• Equity share capital = ₹4,00,000 (₹10 each) → 40,000 shares

Net Profit available for Equity Shareholders : 1,50,000−12,000= 1,38,000

EPS=Net profit available to equity shareholders/ No. of equity shares = 1,38,000/40,000 = 3.45​