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Answer Posted / sitaram sawant
Ans given by Mkv is wrong. When company makes profit, he
pay dividend to shareholders and not pay any profit. The
Term profit and dividend are highly differentiated.
dividend can be distributed only out of profit (u/s.205 of
co's act)of current year or previous year or out of
accumulated reserves
Formula: EPS= profit available to equity holders/no of
shares
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