Mechanic

they have to be applied retrospectively... i.e. all prior stockdiv/split balances have to be adjusted.

e.g.
if you have a 50% stock divided (the same as a 3/2 stock split) you have to multiply all prior stock balances with 1.5

stock balances following the split dont have to be adjusted.

however, this is the "general" procedure when calculating your weighted average shares outstanding and has nothing to do with diluted EPS.

i dont have my books with me, so i cant point you to the exact location, sry.



Edited 1 time(s). Last edit at Tuesday, May 11, 2010 at 12:54PM by chefe_.