For several years Orbon, Inc., has followed a policy of paying a cash dividend of $0.68...
For several years Orbon, Inc., has followed a policy of paying a cash dividend of $0.68 per share and having a 6% stock dividend. In the 2017 annual report, Orbon reported restated earnings per share for 2015 of $0.88.
Required:
a. Calculate the originally reported earnings per share for 2015. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. Calculate the restated cash dividend per share for 2015 reported in the 2017 annual report for comparative purposes. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Homework Answers
| a. | Originally reported earnings per share for 2015 | = | $ 0.99 |
| b. | Restated cash dividend for 2015 reported in the 2017 annual report | = | $ 0.61 |
| Workings: | |||
| a. | Earnings per share for 2015: | ||
| 2017 | = | $ 0.88 | |
| 2016 ($0.88 X 1.06) | = | $ 0.93 | |
| 2015 ($0.93 X 1.06) | = | $ 0.99 | |
| b. | Restated cash dividend: | ||
| 2015 | = | $ 0.68 | |
| 2016 ($0.68 / 1.06) | = | $ 0.64 | |
| 2017 ($0.64 / 1.06) | = | $ 0.61 |
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