Question

If a stock split occurred, when calculating the current year's EPS, the shares are treated as issued:A. At the end of the year.B. On the first day of the next fiscal year.C. At the beginning of the year.D. On the date of distribution.

Answer 1

Answer:

Correct answer is (C)

Explanation:

At the beginning of the year.

Earnings per share (EPS) is the portion of profit earned by the company that is allocated to each outstanding share of its common stock. It is determined by taking the difference between a company's net income and dividends paid for preferred stock and then divided by the average number of shares outstanding. So if stock split occurred when calculating the current year EPS, the shares are treated as issued at the beginning of the year.