(f) Earnings per share:
Profits available for equity shareholders 300 600
------------------------------------------------= ------ = Rs.3 ------ = Rs.6
Number of Equity Shares 100 100
(g) Dividend Cover:
Profits available for equity shareholders 300 600
----------------------------------------------- = ----- = Rs.3 ----- = Rs.4
Dividend for Equity shareholders 100 times 150 times
(Rs. in lakhs)
1989 1990 1991
Working Notes:-
(1) Capital Employed:
Total Assets 4,300 5,700 7,000
Less: Current Liabilities:
Cash Credit from Banks 800 1,000 1500
Sundry creditors 1,200 - 2000 900 - 1900 1100 - 2600
Average Capital employed 2 300 + 3800 3800 + 4400
2 2
= 3.050 = 4,100
(2) Debt:
Secured Term Loans: 2,000 2,400
(3) Equity:
Share Capital 1,000 1,000
Reserve & Surplus 800 1,000
1,800 2,000
(4) Current Assets:
Stock 2,400 2,800
Debtors 500 900
Other Current Assets 1,200 1,300
4,100 5,000
(5) Current Liabilities: 1,900 2,600
(As per WN 1)