The correct answer is $\boxed{\text{B) Rs 6.70}}$.
Cash flow per share (CFPS) is a measure of a company’s profitability and is calculated by dividing cash flow from operations (CFO) by the number of common shares outstanding.
In this case, CFO is given as Rs 313,650,000 and common shares outstanding are given as 55,000,000. Therefore, CFPS is:
$$CFPS = \frac{CFO}{Number of common shares outstanding} = \frac{313,650,000}{55,000,000} = Rs 6.70$$
Option A is incorrect because it is the cash flow from operations divided by the number of preferred shares outstanding. Preferred shares are a type of equity security that has a higher claim on a company’s assets and earnings than common shares. Therefore, the cash flow from operations should be divided by the number of common shares outstanding, not the number of preferred shares outstanding.
Option C is incorrect because it is the net income divided by the number of common shares outstanding. Net income is a measure of a company’s profitability after accounting for all expenses, including taxes. However, it does not take into account the cash that a company generates from its operations. Therefore, the cash flow from operations should be used to calculate CFPS, not the net income.
Option D is incorrect because it is the cash flow from operations plus depreciation divided by the number of common shares outstanding. Depreciation is an accounting expense that does not represent a cash outflow. Therefore, it should not be included in the calculation of CFPS.