For several years Orbon, Inc., has followed a policy of paying a cash dividend o
ID: 2584653 • Letter: F
Question
For several years Orbon, Inc., has followed a policy of paying a cash dividend of $0.59 per share and having a 10% stock dividend. In the 2017 annual report, Orbon reported restated earnings per share for 2015 of $1.16.
Required:
a. Calculate the originally reported earnings per share for 2015. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. Calculate the restated cash dividend per share for 2015 reported in the 2017 annual report for comparative purposes. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Explanation / Answer
a As reported in 2017 1.16 As reported in 2016 1.28 =1.16*1.1 Earnings per share for 2015 1.40 =1.276*1.1 b As reported in 2017 0.59 As reported in 2016 0.54 Dividend per sharefor 2015 0.49