Answer to Question #302634 in Accounting for Milan

Question

Calculate the weighted average outstanding shares. The answer is 249.

 

1/1 Outstanding = 100 shares

4/1 Issued = 20 shares

6/1 Declared dividend = 10%

10/1 Acquired = 10 shares

11/1 declared = 2:1 stock split

Answer 1

Outstanding shares

No of shares. Weight No

$A=100\times1=100$

$B=(100+20)\times0.75=90$

$C=120\times0.25=30$

$D=165\times0.17=28$

$Total=A+B+C+D$

$Total=100+90+30+28=248$

Total weighted shares are 248.