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QUESTION 1. Many believe that earnings per share is crucial to most financial statement users. Together with earnings, it is also the commonly reported

  

QUESTION 1. Many believe that earnings per share is crucial to most financial statement users. Together with earnings, it is also the commonly reported financial statistic about a company's yearly activities. Discuss the following: c. If a 10% stock dividend is issued halfway through the year, how many additional shares are added to the denominator of the EPS calculation? Does the answer change if the same number of shares is issued for cash? Why? d. When would stock options be antidilutive? e. How do we report antidilutive securities? And why?

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