The 2010 annual report of Software City, Inc., included the following comparative summary of earnings per share over the last three years:
Earnings per share
- 2010- $3.15
- 2009- $2.40
- 2008- $1.64
In 2011, Software City, Inc., declared and distributed a 100 percent stock dividend. Following this stock dividend, the company reported earnings per share of $1.88 for 2011.
a. Prepare a three-year schedule similar to the one above, but compare earnings per share during the years 2011, 2010, and 2009. (Hint: All per-share amounts in your schedule should be based on the number of shares outstanding after the stock dividend.)
Earnings per share