From the following information calculate (i) Earning per share (ii) Book value per share (iii) Dividend payout ratio (iv) Price earning ratio
`{:("Particulars",,Rs.),("70,000 equity shares of Rs 10 each",,7_(,)00_(,)000),("Net Profit after tax but before dividend",,1_(,)75_(,)000),("Market price of a share",,13),("Dividend declared" @ 15%,,):}`

Explanation

i) Earning per share `=("Profit available for Equity Shareholders")/("Number of Equity Shares")`
`=(Rs. 1,75,000)/(Rs. 70,000) = Rs. 2.50`
ii) Book value per share `=("Equity Shareholders’ Funds")/("Number of Equity Shares")`
`=(Rs. 8,75,000)/(Rs. 70,000) = Rs. 12.50`
iii) Dividend payout ratio `=("Dividend per share")/("Earnings per share")`
`=(1.50)/(2.50) = 0.6`
iv) Price earning ratio `=("Market price of a share")/("Earnings per share")`
`=(13)/(2.50) = 5.20`