Question
In 2018, Revelation, Inc., reported the following statistics. 2018 2017 Basic Earnings Per Share $3.60 $2.70 In 2009, their comparative earnings per share were reported
- In 2018, Revelation, Inc., reported the following statistics.
| 2018 | 2017 |
Basic Earnings Per Share | $3.60 | $2.70 |
In 2009, their comparative earnings per share were reported as follows.
| 2019 | 2018 | 2017 |
Basic Earnings Per Share | $3.61 | $3.00 | $2.25 |
There is a change in EPS in 2018. You are informed that the firm is basically the same and that there has been no change in accounting principle.
Required:
a. | Explain the reason that should have been reported in 2018
|
b. | Should the price/earnings ratio be changed by the transaction that caused the change in earnings per share? |
c. | List two other profit-related measures other than earnings per share that would be changed because of this transaction. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started