In 2018, Revelation, Inc., reported the following statistics. 2018 $3.60 Basic Earnings Per Share In 2009,...
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In 2018, Revelation, Inc., reported the following statistics. 2018 $3.60 Basic Earnings Per Share In 2009, their comparative earnings per share were reported as follows. C. 2017 $2.70 2019 $3.61 2018 $3.00 2017 $2.25 Basic Earnings Per Share 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? List two other profit-related measures other than earnings per share that would be changed because of this transaction. In 2018, Revelation, Inc., reported the following statistics. 2018 $3.60 Basic Earnings Per Share In 2009, their comparative earnings per share were reported as follows. C. 2017 $2.70 2019 $3.61 2018 $3.00 2017 $2.25 Basic Earnings Per Share 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? List two other profit-related measures other than earnings per share that would be changed because of this transaction.
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a The reason that should have been reported in 2018 for the change in earnings per share EPS is the ... View the full answer
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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