For several years Orbon, Inc., has followed a policy of paying a cash dividend o
ID: 2503364 • Letter: F
Question
For several years Orbon, Inc., has followed a policy of paying a cash dividend of $0.58 per share and having a 8% stock dividend. In the 2011 annual report, Orbon reported restated earnings per share for 2009 of $1.04.
Calculate the originally reported earnings per share for 2009. (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)
Calculate the restated cash dividend per share for 2009 reported in the 2011 annual report for comparative purposes. (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)
For several years Orbon, Inc., has followed a policy of paying a cash dividend of $0.58 per share and having a 8% stock dividend. In the 2011 annual report, Orbon reported restated earnings per share for 2009 of $1.04.
Explanation / Answer
For several years Orbon, Inc., has followed a policy of paying a cash dividend of $0.58 per share and having a 8% stock dividend. In the 2011 annual report, Orbon reported restated earnings per share for 2009 of $1.04.
Calculate the originally reported earnings per share for 2009. (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)
Earnings per share for 2009 = $1.04 *1.08 = 1.12
Calculate the restated cash dividend per share for 2009 reported in the 2011 annual report for comparative purposes. (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)
Dividend per share for 2011 = 0.58/1.08 = 0.54