Multiple Choice Questions on A company has 5 Debentures of Rs 4 00 000 8 Preference Shares Rs 2 00 000 and number of equity share........... for Punjab Government (Allied) Exams Preparation

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Multiple Choice Questions

A company has 5 Debentures of Rs 4 00 000 8 Preference Shares Rs 2 00 000 and number of equity share...........

Finance( Revenue Account ) Capital Structure
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    A company has 5% Debentures of Rs. 4,00,000; 8% Preference Shares Rs. 2,00,000 and number of equity shares is 6,000. Tax rate is 50% and Earning before interest and tax is Rs. 1,20,000; then earning per share will be:

     

    Rs. 5.67 

     

    Correct Answer

    Rs. 30

     

    Incorrect Answer

    Rs. 7

     

    Incorrect Answer

    Rs. 14

     

    Incorrect Answer
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    Explanation:

    Earning Per Share = Net Profit available for equity shareholders/Number of equity shares

    EPS= 1,20,000 (-) 20,000 = 1,00,000 (-) 50,000 = 50,000 (-) 16,000 = 34,000/6000 = 5.67

    By: Vikas Goyal
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