Effects of stock split and stock dividend on EPSRequired: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.Page 382 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.
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.
Page 382 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.
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