Accounting 25th Edition by Carl Warren, James Reeve, Jonathan Duchac

Exercise 9

The net income (after income tax) of McCants Inc. was $2 per common share in the latest year and $6 per common share for the preceding year. At the beginning of the latest year, the number of shares outstanding was doubled by a stock split. There were no other changes in the amount of stock outstanding. What were the earnings per share in the preceding year, adjusted for comparison with the latest year