Explore BrainMass
Share

EPS on the basis of stock split

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Group project journey #4

a. For the year ended December 31, 2012, Finco, Inc., reported earnings per share of $3.12. During 2013, the company had a 3-for-1 stock split. Calculate the 2012 earnings per share that will be reported in Finco's 2013 annual report for comparative purposes. (Round your answer to 2 decimal places.)

Earnings per share =

b. Additionally, during 2014, Finco had a 2-for-1 stock split. Calculate the 2012 earnings per share that will be reported in Finco's 2014 annual report for comparative purposes. (Round your answer to 2 decimal places.)

Earnings per share =

c. If Finco had issued a 10% stock dividend in 2013 and did not have a stock split, calculate the 2012 earnings per share that will be reported in Finco's 2013 annual report for comparative purposes. (Round your answer to 2 decimal places.)

Earnings per share =

© BrainMass Inc. brainmass.com December 20, 2018, 11:31 am ad1c9bdddf
https://brainmass.com/business/stock-dividends-and-stock-splits/eps-on-the-basis-of-stock-split-565658

Solution Preview

Finco Inc.
Group project journey #4
a. For the year ended December 31, 2012, Finco, Inc., reported earnings per share of $3.12. During 2013, the company had a 3-for-1 stock split. Calculate the 2012 earnings per share that will be reported in Finco's 2013 annual report for comparative purposes. (Round your answer to 2 decimal places.)
Earnings per share =

b. Additionally, during 2014, Finco had a 2-for-1 stock split. Calculate the 2012 earnings per share that will be reported in Finco's 2014 annual report for ...

Solution Summary

The solution helps in computing the 2012 earnings per share that will be reported in Finco's 2014 annual report for comparative purposes for stock split.

$2.19