On January 1, 2015, Warren Corporation had 1,000,000 shares of common stock outs

Question

On January 1, 2015, Warren Corporation had 1,000,000 shares of common stock outstanding. On April 1, the corporation issued 150,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On November 1, the corporation purchased on the market 500,000 of its own outstanding shares and retired them.

Instructions

Compute the weighted average number of shares to be used in computing earnings per share for 2015. (round to the whole share if necessary)

Can someone please help me with this problem thanks!

Explanation / Answer

date particu;ar shares weighted avg no of shares 01.01.2015 No of shares 1000000               1,000,000 [1000000*12/12] 01.04.2015 new shares issued 150000                  112,500 [150000*9m/12m] 01.07.2015 Stock split [2 for 1] 1150000               1,112,500 [1000000*12/12]+[150000*9/12] Less: 01.11.2015 Share redeemed -500000                (416,667) [500000*10/12m] 1800000               1,808,333

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.