From the following information relating to a listed company, calculate value of a share: (i) Equity Share Capital (equity shares of ₹10 each) ₹10,00,000 (ii) 10% Preference Share Capital ₹5,00,000 (iii) Profit earned bef

Calculation of Value of Shares Value of Shares = Price Earnings Ratio * Earning Per Shares = 25 * 2.37 = ₹59.25 per shares Working Notes: Earning Per Share = Profit Available for Equity Shareholders / No of Equity Shares = ₹2,37,000 / 1,00,000 = ₹2.37 Calculation of Profit available for Equity Shareholders Profit before Tax: ₹4,10,000 Less: Tax @ 30% = (₹1,23,000) ₹2,87,000 Less: Preference Dividend (₹50,000) Profit Available to Equity Shareholders: ₹2,37,000