January 1, 2003: 50,000
October 1, 2003: Issued 20,000 shares
March 1, 2004: Issued a 10% stock dividend
July 1, 2004: Declared a 2 for 1 stock split
October 1, 2004: Repurchased 30,000 shares
Calculate the weighted average number of common shares outstanding for 2003 and 2004.
2003 2004
A) 55,000 124,500
B) 10,000 124,000
C) 55,000 146,500
Explanation:
For year 2003:
50,000 作者: JPSem 时间: 2011-7-13 16:32
they started 2003 with 50,000 shares and they issued 20,000, so they ended the year with 70,000.作者: hariRaj 时间: 2011-7-13 16:32
Holy cow! I would have definitely got this question wrong in the exam if I wouldn't have noticed it. I would have definitely started with 55,000. Thanks Kia!
