Calculate the Weighted Average Shares for EPS Purposes If a Firm

question 109

Essay

Calculate the weighted average shares for EPS purposes if a firm started the year with 100 common
shares outstanding, reissued 80 treasury shares March 1, split 2 for 1 on April 1, purchased 50
shares for the treasury on July 1, issued a 40% stock dividend on November 1, and issued 120 shares under a stock option plan on December 1.

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Definitions:

Large Business

A corporation or conglomerate with extensive operations, high revenue, and a significant number of employees.

Managing and Coordinating

The processes of directing, overseeing, and orchestrating activities within an organization to achieve predetermined objectives.

Minimum Efficient Scale

Minimum efficient scale is the smallest scale of production at which a firm can achieve long-term average costs that are as low as possible.

Output Level

The amount of products or services that a business or sector generates during a specific period.