In Computations of Weighted Average of Shares Outstanding, When a Stock

question 2

Multiple Choice

In computations of weighted average of shares outstanding, when a stock dividend or stock split occurs, the additional shares are

• A) weighted by the number of days outstanding.
• B) weighted by the number of months outstanding.
• C) considered outstanding at the beginning of the year.
• D) considered outstanding at the beginning of the earliest year reported.