Problem

Effects of stock split and stock dividend on EPS Required:a.For the year ended December 31...

Effects of stock split and stock dividend on EPS Required:

a.For the year ended December 31, 2009, Finco, Inc., reported earnings per share of $3.12. During 2010 the company had a 3-for-1 stock split. Calculate the 2009 earnings per share that will be reported in Finco’s 2010 annual report for com­parative purposes.


b. During 2011 Finco had a 2-for-1 stock split. Calculate the 2009 earnings per share that will be reported in Finco’s 2011 annual report for comparative purposes.


c. If Finco had issued a 10% stock dividend in 2010 and did not have a stock split, calculate the 2009 earnings per share that will be reported in Finco’s 2010 annual report for comparative purposes. Round your answer to two decimal places.

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Solutions For Problems in Chapter 10