XYZ co has share capital of 1000000 shares of $.50 and $500000 8% preference shares.
The profit for the year(after tax of 30%)is $420000.
What is the Earning per share for the year?
Please solve the question and show working. Thanks
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11y ago#1(420,000 - (8% x 500,000)) / 1,000,000 = $0.38
Thank you so much. I wana ask little question formula says EPS=PAT-preference dividend/Number of shares issues
so preference share we consider as a preference dividend. can you please explain me . Thanks
11y ago#3EPS is the earnings available for ordinary shareholders (i.e. profits less preference dividend) divided by the number of ordinary shares.
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