Principles of Financial Accounting (Elon University)
11th Edition
ISBN: 9781308839233
Author: Marshall
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 10.1ME
To determine
Concept Introduction:
Basic Earnings per share:
The Basic Earnings per share is the amount of net income earned by each common share outstanding. The Earnings per share calculated by with help of following formula:
Stock split:
Stock split refers to the dividing one share into two of more shares. It is usually done to make the share available for small investor with smaller value. A stock split does not affect the total
To Calculate:
The earnings per share to be reported in Spike Inc's 2017 annual report.
Expert Solution & Answer
Answer to Problem 10.1ME
The earnings per share to be reported in Spike Inc's 2017 annual report shall be $1.45 per share.
Explanation of Solution
The earnings per share to be reported in Spike Inc's 2017 annual report is calculated as follows;
Earnings per share before stock split =$5.80
Stock Split = 1/4
Earnings per share after stock split =$5.80/4 = $1.45
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Chapter 10 Solutions
Principles of Financial Accounting (Elon University)
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