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On January 1, 2020, a company had 700,000 shares of common stock outstanding. On March 1,...

On January 1, 2020, a company had 700,000 shares of common stock outstanding. On March 1, it issued a 3-for-1 stock split. On July 1 it Issued 50,000 shares. On September 1 it Issued a 20% stock dividend. Determine the weighted-average number of shares outstanding as of December 31, 2020.

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Answer:

We know that Weighted-Average number of shares Outstanding is the total sum of product of Number of Shares Outstanding and the reporting period these shares covered.

i.e. Weighted-Average Number of Shares Outstanding = No. of Shares Outstanding * Period Covered by these shares (for each portion). The sum total would be the answer.

The Weighted-Average Number of Shares Outstanding as of December 31, 2020 is 2,035,000 shares

ekkarill92 answered 1 year ago
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