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A company had 100,000 common shares outstanding on 1 January 2009. The company has no plans to issue additional shares or purchase treasury shares during the year, but is planning either a two-for-one stock split or a 100 percent stock dividend on 1 July. The number of shares used to determine earnings per share at 31 December 2009, will be closest to: A:200,000 for both the stock split and the stock dividend. B: 200,000 for the stock split and 150,000 for the stock dividend. C:150,000 for the stock split and 200,000 for the stock dividend. |
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