Q1. [1] § (III) Profitability Ratios
_________ measures the profit available to the equity shareholders per share, that is, the amount that they can get on every share held.
- (A) Earning Per Share (EPS)
- (B) Return on Equity
- (C) Price to Earning Ratio (P/E Ratio)
- (D) Net Profit Ratio
Previously asked in CBSE board exam
2026 92 Q3 (vi)
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer
(A) Earning Per Share (EPS)
EPS measures the profit available to equity shareholders per share — the amount they can get on every share held.
Explanation
The passage directly states: "EPS measures the profit available to the equity shareholders per share, that is, the amount that they can get on every share held." This is a straight definition-based MCQ; option (A) is the only correct match.
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