Walden Corporation had 1,000,000 shares of authorized common stock; 200,000 shares issued, and 120,000 shares outstanding...

Walden Corporation had 1,000,000 shares of authorized common stock; 200,000 shares issued, and 120,000 shares outstanding as of January 1, 2019. During 2019 Walden reported EBIT of $2,000,000 and net income of $1,575,000 and paid out $300,000 in common dividends to the common stockholders. Also, on October 1, 2019 Walden repurchased 20,000 shares of the outstanding common stock. What is the weighted average number of shares Walden would use in computing Basic EPS for 2019?

Expert Solution

The weighted average number of shares Walden would use in computing Basic EPS of 2019:

Date	Shares outstanding	Computation	Weighted Average number of Shares
01.01.2019	1,20,000.00	120,000 * 9 / 12	90,000.00
01.10.2019	1,00,000.00	100,000 * 3 / 12	25,000.00
Weighted Average Number of Shares			1,15,000.00

ekkarill92 answered 2 years ago

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