Effects of stock split and stock dividend on EPS
Response to the following :
a. For the year ended December 31, 2012, Finco, Inc., reported earnings per share of $3.12. During 2013, the company had a 3-for-1 stock split. Calculate the 2012 earnings per share that will be reported in Finco's 2013 annual report for comparative purposes.
b. During 2014, Finco had a 2-for-1 stock split. Calculate the 2012 earnings per share that will be reported in Finco's 2014 annual report for comparative purposes.
c. If Finco had issued a 10% stock dividend in 2013 and did not have a stock split, calculate the 2012 earnings per share that will be reported in Finco's 2013 annual report for comparative purposes. Round your answer to two decimal places.