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This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.

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August 26, 2015 at 3:47 pm #268630
Mujtaba
Member
- Topics: 13
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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
August 27, 2015 at 8:11 am #268731
John Moffat
Keymaster
- Topics: 57
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(420,000 – (8% x 500,000)) / 1,000,000 = $0.38
August 27, 2015 at 10:43 pm #268859
Mujtaba
Member
- Topics: 13
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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
August 28, 2015 at 8:50 am #268906
John Moffat
Keymaster
- Topics: 57
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EPS is the earnings available for ordinary shareholders (i.e. profits less preference dividend) divided by the number of ordinary shares.
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