For the year ended December 31, 2018, Finco Inc. reported earnings per share of $1.56. Required: a.

Question:

For the year ended December 31, 2018, Finco Inc. reported earnings per share of $1.56.

Required:

a. During 2019, the company had a 3-for-1 stock split. Calculate the 2018 earnings per share that will be reported in Finco’s 2019 annual report for comparative purposes.

b. During 2020, Finco had an additional 2-for-1 stock split. Calculate the 2018 earnings per share that will be reported in Finco’s 2020 annual report for comparative purposes.

c. Assume that Finco had issued a 10% stock dividend in 2019 and did not have a stock split. Calculate the 2018 earnings per share that will be reported in Finco’s 2019 annual report for comparative purposes. Round your answer to two decimal places.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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