Compute Earning per share from following information | Net profit after tax but before dividend | 1,75,000 | |---|---| | Equity shares of Rs. 10 each | Rs. 7,00,000 | | Dividend declared @15% | | | Market price of a share | Rs.13 |

Compute Earning per share from following… - CUET UG 2025 Accountancy PYQ

CUET UG 2025 — Accountancy Financial Statements

2025mcqeasy

Compute Earning per share from following information

Net profit after tax but before dividend	1,75,000
Equity shares of Rs. 10 each	Rs. 7,00,000
Dividend declared @15%
Market price of a share	Rs.13

Official previous-year question

Held on 3 Jun 2025 · Verified 13 Jul 2026.

Options

A
Rs. 4.3
B
Rs. 5.2
C
Rs 3
D
Rs. 2.50

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Solution

Earnings Per Share (EPS) is calculated using the formula:

$ $EPS = \frac{Net\ Profit\ After\ Tax}{Number\ of\ Equity\ Shares}$

Finding Number of Equity Shares:

Number of Equity Shares = $\frac{Total\ Value\ of\ Equity\ Shares}{Face\ Value\ per\ Share}$

Number of Equity Shares = $\frac{7,00,000}{10}$ = 70,000 shares

Calculating EPS:

EPS = $\frac{1,75,000}{70,000}$ = Rs. 2.50

The dividend percentage and market price are not required for EPS calculation. EPS represents the profit earned per share, not the dividend distributed. The profit figure used is "after tax but before dividend" which is the correct basis for EPS computation.

Correct Option: 4 (Rs. 2.50)

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