For the fiscal year ended March 31, 2014, a company reported earnings per share of $3.25 and cash dividends per share of $0.50. During fiscal 2015, the company had a 3-for-2 stock split. In the annual report for the fiscal year ended March 31, 2015, earnings per share and cash dividends for fiscal 2014 would be reported, respectively, as:

Question

Quizplus · Accepted Answer

After a 3-for-2 stock split, the number of shares increases by 50%, so the earnings and dividends per share for the previous year must be adjusted by dividing by 1.5. Thus, $3.25/1.5 = $2.17 and $0.50/1.5 = $0.33.

For the Fiscal Year Ended March 31, 2014, a Company