dinesh rajput (article assistant) (25 Points)
14 February 2014IN 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?
CA Subin VR
(Practicing CA)
(450 Points)
Replied 22 February 2014
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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