Problem:
Previously there were 100,000 shares. In 2008, Zello Company declared a 10% stock dividend. In 2007, earnings per share were $ 1.00.
Required:
Question: When the 2007 earnings per share are disclosed in the 2008 annual report, it will be disclosed at:
A: $1.10
B. $1.00
C. $0.91
D. $0.81
Note: Please describe comprehensively and provide step by step solution.