In 2010, Signal Communications Ltd. reported earnings per share of $0.34. Signal had 28.1 million common shares outstanding during 2010 and 2011, and no preferred shares. In 2011, Signal reported net income of $10,926,000.
Required:
a. What were the net earnings for 2010?
b. Calculate the earnings per share for 2011.
c. Will Signal also disclose a diluted earnings per share amount? Explain.
d. Assume that in December 2010 Signal decided to split its common shares three for one. What effect will this have on the earnings per share amount calculated in "b"? Will the earnings per share amount for 2010 be affected as well? Explain.