In 2012, ABC Company Reported Earnings Per Share of $2

question 24

Multiple Choice

In 2012, ABC Company reported earnings per share of $2.00 for 10,000 shares.In 2013, there was a 2-for-1 stock split, for which 2013 earnings per share were reported at $2.10.The appropriate earnings per share presentation for a 2-year comparative analysis would be: $$\begin{array} { l c r } &{ 2013 } &{ 2012 } \\\hline\text { I. } & 2.10 & \$ 2.00 \\\text { II. } & \$ 2.05 & \$ 2.00 \\\text { III. } & \$ 1.05 & \$ 2.00 \\\text { IV. } & \$ 1.05 & \$ 1.00\end{array}$$

• A)I
• B)II
• C)III
• D)IV
• E)none of the answers are correct

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Definitions:

Raw Materials

The basic substances or components that are processed to manufacture finished goods or are incorporated into the production process.