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Required: a. For the year ended December 31, 2015, Finco, Inc., reported earnings per share of...

Required:

a. For the year ended December 31, 2015, Finco, Inc., reported earnings per share of $9.50. During 2016, the company had a 5-for-1 stock split. Calculate the 2015 earnings per share that will be reported in Finco's 2016 annual report for comparative purposes. (Round your answer to 2 decimal places.)
Earnings per share

b. Additionally, during 2017, Finco had a 4-for-1 stock split. Calculate the 2015 earnings per share that will be reported in Finco's 2017 annual report for comparative purposes. (Round your answer to 2 decimal places.)
Earnings per share

c. If Finco had issued a 11% stock dividend in 2016 and did not have a stock split, calculate the 2015 earnings per share that will be reported in Finco's 2016 annual report for comparative purposes. (Round your answer to 2 decimal places.)
Earnings per share

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Answer #1

Answer;

A)
2015 earnings per share that will be reported in Finco's 2016 annual report
=$9.50/5
= $1.90 per share
B)
2015 earnings per share that will be reported in Finco's 2017 annual report
= $9.50/(5*4)
= $9.50/20
= $ 0.48 per share
C)
2015 earnings per share that will be reported in Finco's 2016 annual report
=$9.50/(1+0.11)
=$9.50/1.11
= $8.56 per share
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