In: Accounting
Amandeep started the year with 500,000 shares of common stock outstanding. On April 1, she issued 200,000 shares. On July 15, she had a 2:1 stock split. On November, she purchased back 100,000 shares (treasury stock).
What is the weighted number of share Amandeep has outstanding? _______________
Weightage Number of Shares | ||||||
(Accounting Year January XXXX to December XXXX) | ||||||
Date | Particulars | No. of Shares Issued (A) | No. of Shares Bought back | No. of Shares Outstanding | No. of Months Upto December XXXX (B) | Total No of Shares (A X B) |
1-Jan | Balance Beginning of the year | 500000 | - | 500000 | 12 | 6000000 |
1-Apr | Issue of Shares | 200000 | - | 700000 | 9 | 1800000 |
15-Jul | Stock Spilit (2:1)* | 1400000 | - | 2100000 | 5.5 | 7700000 |
1-Nov | Buyback of Shares | - | 100000 | 2000000 | 2 | -200000 |
15300000 | ||||||
*Number of Shares Outstanding before the event of Stock Spilit, should be consider for Newly shares issued against of Stock spilit.i.e.2:1 | ||||||
The weighted average number of shares | ||||||
= Total Number of Shares | ||||||
12 | ||||||
15300000 | ||||||
12 | ||||||
= | 1275000 | Shares | ||||
Alternatively, | ||||||
The weighted average number of shares | ||||||
= (500000X3/12)+ (700000X3.5/12)+(2100000x3.5/12) + (2000000 x 2/12) | ||||||
= 1275000 Shares | ||||||