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What would eps be before and after the stock split

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Pharma Duece Corporation, which manufactures biotech drugs, has been experiencing a tremendous growth in the price of its common stock. The stock price increased from $4.50 on January 1, 2007 to $18.00 per share on December 31, 2007. Its current net worth statement includes the following:

Common Stock (350,000 shares at $6par) 2,100,000

Additional paid in Capital 19,050,000

Retained Earnings 1,350,000

Total NET work $22,500,000

a) What changes would occur in the above statement of net worth after a 2 for 1 stock split?

b) Earnings for 2007 were $1,575,000, what would EPS be before and after the stock split?

Reference no: EM131539146

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