J E Davis Pharmaceuticals Corporation which manufactures biotech drugs has been experiencing a tremendous growth in the price of its common stock.The stock price increased from $5.00 on January 1,2011 to $21.00 per share on December 31,2015.Its current net worth statement is as follows:
$\begin{array}{lr}
\text { Common Stock ( } 500,000 \text { shares) } & \$ 50,000,000 \
\text { Retained Earnings } & \underline{3,500,000} \
\text { Total Net Worth } & \$ 53,500,000
\end{array}$ A)What changes would occur in the above statement of net worth after a 4 for 1 stock split? B)Earnings for 2015 were $3,10,000,what would EPS be before and after the stock split?

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The Answer of J E Davis Pharmaceuticals Corporation which manufactures biotech drugs has been experiencing a tremendous growth in the price of its common stock.The stock price increased from $5.00 on January 1,2011 to $21.00 per share on December 31,2015.Its current net worth statement is as follows:
$\begin{array}{lr}
\text { Common Stock ( } 500,000 \text { shares) } & \$ 50,000,000 \
\text { Retained Earnings } & \underline{3,500,000} \
\text { Total Net Worth } & \$ 53,500,000
\end{array}$ A)What changes would occur in the above statement of net worth after a 4 for 1 stock split? B)Earnings for 2015 were $3,10,000,what would EPS be before and after the stock split?

J E Davis Pharmaceuticals Corporation Which Manufactures Biotech Drugs Has