Based on the case study details provided, find the Earnings Per Share (EPS) for the equity stockholders: - Accountancy MCQ CUET Accountancy 2025 14 May Shift 2 2026 | ExamTest.live | ExamTest.live

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1 mark

Based on the case study details provided, find the Earnings Per Share (EPS) for the equity stockholders:

A $4.85$
B $3.45$
C $2.86$
D $3.89$

Solution & Step-by-step Explanation

1. Calculate Profits Available for Equity Shareholders: Net Profit After Tax (NPAT) = Rs. 1, 50, 000 Less: Preference Dividend = 12% of Rs. 1, 00, 000 = Rs. 12, 00, 0 \div 100 = Rs. 12, 000 Net Profit for Equity = 1, 50, 000 - 12, 000 = Rs. 1, 38, 000 Calculate Number of Equity Shares: Number of Equity Shares = \frac{Equity Share Capital}{Face Value per Share} = \frac{4 , 00 , 000}{10} = 40, 000 shares Compute Earnings Per Share (EPS): EPS = \frac{Net Profit Available for Equity Shareholders}{Total Number of Equity Shares} EPS = \frac{1 , 38 , 000}{40 , 000} = 3.45 per share

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Based on the case study details provided, find the Earnings Per Share (EPS) for the equity stockholders:

A

4.85

B

3.45

C

2.86

D

3.89

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