How to calculate earning per share?

Help me calculate price per share?? Please and thank you?

  • Bermuda Triangle Corporation (BTC) currently has 300,000 shares of stock outstanding that sell for $93 per share. Assuming no market imperfections or tax effects exist. Determine the share price and new number of shares outstanding if... (a) BTC has a five-for-three stock split. Price per share? Shares outstanding? (b) BTC has a 15 percent stock dividend. Price per Share? Shares outstanding? (c) BTC has a 39.5 percent stock dividend. Price per Share? Shares outstanding? (d) BTC has a four-for-seven reverse stock split. Price per Share? Shares outstanding?

  • Answer:

    (a) BTC has a five-for-three stock split. Price per share? $93 x 3 / 5 = $55.80 Shares outstanding? 300,000 x 5 / 3 = 500,000 (b) BTC has a 15 percent stock dividend. Price per Share? $93 / 1.15 = $80.87 Shares outstanding? 300,000 x 1.15 = 345,000 (c) BTC has a 39.5 percent stock dividend. Price per Share? $93 / 1.395 = $66.67 Shares outstanding? 300,000 x 1.395 = 418,500 (d) BTC has a four-for-seven reverse stock split. Price per Share? $93 * 7 / 4 = $162.75 Shares outstanding? 300,000 * 4 / 7 = 171,428

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