The 2010 annual report of Software City, Inc., included the following comparativ
ID: 2346577 • Letter: T
Question
The 2010 annual report of Software City, Inc., included the following comparative summary of earnings per share over the last three years:Earnings per share- 2010: $3.15... 2009: $2.40... 2008: $1.64
In 2011, Software city inc, declared and distributed a 100 percent stock dividend. Following this stock dividend, the company reported earnings per share of $1.88 for 2011.
A. Prepare a three-year schedule similar to the one above, but compare earnings per share during the years 2011, 2010, and 2009. (hint: all per-share amounts in your schedule should be based on the number of shares outstanding after the stock dividend.) Round your answers to 2 decimal places.
Earnings per share- 2011 ? .... 2010 ?.... 2009 ?
Explanation / Answer
Hi, If you like my answer rate me first...that way only I can earn points. Thanks Since 100% stock dividend is given no. of outstanding shares will be doubled, and thus for comparing EPS will become halved So Earnings per share- 2011: $1.88... 2010: $3.15/2 = $1.575... 2009: $2.40/2 = $1.20
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