QUESTION 1 Given below are Equity Shares information and net profit of X Inc: Particulars No. of Shares in million Equity Share Capital of $ 10 each as on 1.1.2017 100 New Issue of Shares of $ 10 each as on 1.7.2017 100 Consolidated Net Profit for 2017 ($ In Million) 600 Non-controlling Interest 30% Calculate EPS.


To calculate the earnings per share (EPS) for X Inc, we need to first determine the weighted average number of shares outstanding for the year and then divide the consolidated net profit by the weighted average number of shares outstanding.

Step 1: Calculate the weighted average number of shares outstanding

The weighted average number of shares outstanding is calculated by taking the number of shares outstanding for each period during the year and multiplying it by the proportion of the year that the shares were outstanding.

Number of shares outstanding as on 1.1.2017 = 100 million

Number of shares outstanding as on 1.7.2017 = 200 million

Weighted average number of shares outstanding = (100 million x 184/365) + (200 million x 181/365) = 148.63 million

Step 2: Calculate the earnings per share

Earnings available to common shareholders = Consolidated net profit - Non-controlling interest

= $600 million - ($600 million x 30%)

= $420 million

Earnings per share = Earnings available to common shareholders / Weighted average number of shares outstanding

= $420 million / 148.63 million

= $2.82 per share

Therefore, the EPS for X Inc for the year 2017 is $2.82 per share.

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