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作者: MythosHF 时间: 2011-7-11 18:42
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.作者: jim8z3 时间: 2011-7-11 18:42
