From the following information, calculate EPS & DPS :-Sales – 11150 Cr.Cost of material consumed – 4250 Cr. Employee expenses – 1200 Cr.Depreciation & amortisation expenses – Rs.910 Cr. Other expenses – Rs.1870 Cr.Interest – 15% Tax – 30% Pref. dividend – 15%No. of equity shareholders – 10 Cr. Dividend pay-out ratio - 60%
Question
From the following information, calculate EPS & DPS :-Sales – 11150 Cr.Cost of material consumed – 4250 Cr. Employee expenses – 1200 Cr.Depreciation & amortisation expenses – Rs.910 Cr. Other expenses – Rs.1870 Cr.Interest – 15% Tax – 30% Pref. dividend – 15%No. of equity shareholders – 10 Cr. Dividend pay-out ratio - 60%
Solution
To calculate EPS (Earnings Per Share) and DPS (Dividends Per Share), we need to follow these steps:
Step 1: Calculate the net profit after tax. Net profit = Sales - Cost of material consumed - Employee expenses - Depreciation & amortisation expenses - Other expenses - Interest Net profit = 11150 Cr. - 4250 Cr. - 1200 Cr. - 910 Cr. - 1870 Cr. - (15% of 11150 Cr.) Net profit = 11150 Cr. - 4250 Cr. - 1200 Cr. - 910 Cr. - 1870 Cr. - 1672.5 Cr. Net profit = 12147.5 Cr.
Step 2: Calculate the earnings available to equity shareholders. Earnings available to equity shareholders = Net profit - Pref. dividend Earnings available to equity shareholders = 12147.5 Cr. - (15% of 12147.5 Cr.) Earnings available to equity shareholders = 12147.5 Cr. - 1822.125 Cr. Earnings available to equity shareholders = 10325.375 Cr.
Step 3: Calculate EPS (Earnings Per Share). EPS = Earnings available to equity shareholders / No. of equity shareholders EPS = 10325.375 Cr. / 10 Cr. EPS = 1032.5375 Cr.
Step 4: Calculate DPS (Dividends Per Share). DPS = Dividend pay-out ratio * EPS DPS = 60% * 1032.5375 Cr. DPS = 619.5225 Cr.
Therefore, the EPS is 1032.5375 Cr. and the DPS is 619.5225 Cr.
Similar Questions
From the following information, calculate EPS & DPS :-Sales – 11150 Cr.Cost of material consumed – 4250 Cr. Employee expenses – 1200 Cr.Depreciation & amortisation expenses – Rs.910 Cr. Other expenses – Rs.1870 Cr.Interest – 15% Tax – 30% Pref. dividend – 15%No. of equity shareholders – 10 Cr. Dividend pay-out ratio - 60%
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