Effects of stock split and stock dividend on EPS Required: a. For the year ended December 31,
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Effects of stock split and stock dividend on EPS
Required:
a. For the year ended December 31, 2021, Finco Inc. reported earnings per share of $3.30. During 2022, the company had a 5-for-1 stock split. Calculate the 2021 earnings per share that will be reported in Finco’s 2022 annual report for comparative purposes.
b. During 2023, Finco had a 2-for-1 stock split. Calculate the 2021 earnings per share that will be reported in Finco’s 2023 annual report for comparative purposes.
c. If Finco had issued a 10% stock dividend in 2022 and did not have a stock split, calculate the 2021 earnings per share that will be reported in Finco’s 2022 annual report for comparative purposes. Round your answer to two decimal places.
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