The EBIT of a firm is ₹1,25,000. It consist of 8% Bank loan of ₹5 Lakh, 10% Preference share capital of ₹2 Lakh and 30000 Equity shares of ₹10 each. If applicable income tax rate is 30%, Earning per share will be (₹): (A
CS Executive · Financial and Strategic Management · PYQS · December 2022
The EBIT of a firm is ₹1,25,000. It consist of 8% Bank loan of ₹5 Lakh, 10% Preference share capital of ₹2 Lakh and 30000 Equity shares of ₹10 each. If applicable income tax rate is 30%, Earning per share will be (₹): (A) 1.25 (B) 1.32 (C) 1.98 (D) 1.56
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Financial Management
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