769 Views

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


Prince Gupta 20th Aug, 2020
Answer (1)
Prabhav Sharma 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)

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
VIT - VITEEE 2026
Apply
National level exam conducted by VIT University, Vellore | Ranked #16 by NIRF for Engg. | NAAC A++ Accredited
RV University, Bangalore | La...
Apply
Excellent curriculum; an impressive range of electives, besides core law courses. Up to 100% merit scholarship on a first-come, first-served basis
Amity University-Noida M.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida MBA Ad...
Apply
Ranked among top 10 B-Schools in India by multiple publications | Top Recruiters-Google, MicKinsey, Amazon, BCG & many more.
Great Lakes Institute of Mana...
Apply
Globally Recognized by AACSB (US) & AMBA (UK) | 17.8 LPA Avg. CTC for PGPM 2025
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books