given - nominal value of share rs 10,no. of shares issued 10,000.Total net profit 20,000 and dividend paid 10% . what is earning per share
Answer (1)
20th Aug, 2020
Hello,
Value per share = 10 (Given)
Number of shares = 10000 (Given)
Dividend paid = 10 % (Given)
Net profit = 20000 (Given)
Now, we know that Dividend Paid = Value per share x number of shares x % Dividend paid
= 10 * 10000 * 0.1
= 10000
Now, earnings per share (EPS) = (Net profit - dividend) / number of shares
EPS = (20000 - 10000) / 10
Solving this, we get:
EPS = 1 (Answer)
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