Whether it is possible that deps be greater than beps

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IN STATEMENT OF INCOME OF JP GROUP in ET Feb 11,2014 pge no. 11 basic EPS is less than Diluted EPS wheter it is possible and if yes HOW? plz ans me?

 

Replies (1)

it is possible.

It depends on the leverage and the proporation of number of debentures conerted into shares.

Take the below data. DEPS would be greater than EPS.

NP 1000

No of shares 100

Interest 900

Tax rate 30%

No of shares converted by Deb 300

 


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