This paper circulates around the core theme of If Placebo had total net income for the year of $10,000,000 and 20,000,000 shares of common stock outstanding before the stock dividend, what are firm earnings per share? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Question
1: In the spring of 2015 the CFO of Placebo Pharmaceuticals, Inc. took a
proposal to the firm’s board of directors to distribute a noncash dividend to
the firm’s shareholders in the form of new shares of common stock.
Specifically, the CFO proposed that the company pay 0.025 shares of stock to
the holders of each share of common stock such that the holder of 1,000 shares
of stock would receive an additional 25 shares of common stock.
a. If Placebo had total
net income for the year of $10,000,000 and 20,000,000 shares of common stock
outstanding before the stock dividend, what are firm earnings per share?
b. After paying the stock
dividend, what is the firm’s earnings per share?
