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For the year ended December 31, 2018, Finco Inc. reported earnings per share of $4.10.
Required:
Problem 1: 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.
Problem 2: During 2020, Finco had an additional 5-for-1 stock split. Calculate the 2018 earnings per share that will be reported in Finco's 2020 annual report for comparative purposes.
Problem 3: Assume that Finco had issued a 11% 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.
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