Stock Splits/EPS someone

simeezee

Its an easy concept yet not sure how stock splits effect weighted avg shares in the denominator when calculating diluted: could someone fill in the ? thx.

100,000 issued on July 1 (100m) x 6/12 x 1.10
2 for 1 stock split April 1 ? x 9/12 x 1.10
10% dividend of May 1

MythosHF

Lets say 1 million shares outstanding at the beginning of the year.
any splits or dividends have to be applied as if thet have been outstanding from the beginning of the year.

Jan 1 - 1,000,000 + [[2 for 1 stock split April 1) ]] 2,000,000 + [[10% dividend of May 1] 300,000 = 3,300,000 outstanding for 12 months

July 1 - 100,000 issued which will be outstanding for 6 months

So weighted shares
3,300,000 *12/12 + 100,000 *6/12 = 3,350,000



Edited 1 time(s). Last edit at Thursday, November 11, 2010 at 11:33AM by ravinsu.

jim8z3

much appreciated thx!