basic EPS

[Loco303]

why don’t we consider the stock split in the denominator here ?

Especially if you look at that question.

 

[S2000magician]

In the first question, the 5 million shares are the number that exist after the split and stock dividend; you divide by the 5 million shares. The EPS would be very different if you’d divided by only 2 million shares.
The point of the second question is exactly that: the EPS will be different after the 10:1 split than before. They’re saying the same thing.
Red shares, blue shares.
Take a look at the articles I wrote on EPS and WACSO (especially the latter); they may help:

• EPS: http://financialexamhelp123.com/earnings-per-share-eps/
• WACSO: http://financialexamhelp123.com/weighted-average-common-shares-outstandi...