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Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314 Exercise 2
Effects of stock split and stock dividend on EPS
Required:
a. For the year ended December 31, 2015, Finco, Inc., reported earnings per share of $1.56. During 2016, the company had a 3-for-1 stock split. Calculate the 2015 earnings per share that will be reported in Finco's 2016 annual report for comparative purposes.
b. During 2017, Finco had a 2-for-1 stock split. Calculate the 2015 earnings per share that will be reported in Finco's 2017 annual report for comparative purposes.
c. If Finco had issued a 10% stock dividend in 2016 and did not have a stock split, calculate the 2015 earnings per share that will be reported in Finco's 2016 annual report for comparative purposes. Round your answer to two decimal places.
Required:
a. For the year ended December 31, 2015, Finco, Inc., reported earnings per share of $1.56. During 2016, the company had a 3-for-1 stock split. Calculate the 2015 earnings per share that will be reported in Finco's 2016 annual report for comparative purposes.
b. During 2017, Finco had a 2-for-1 stock split. Calculate the 2015 earnings per share that will be reported in Finco's 2017 annual report for comparative purposes.
c. If Finco had issued a 10% stock dividend in 2016 and did not have a stock split, calculate the 2015 earnings per share that will be reported in Finco's 2016 annual report for comparative purposes. Round your answer to two decimal places.
Explanation
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(a) Earnings per Share (EPS) is calculat...
Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
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