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:

Private-sector Employment

Employment within organizations that are not owned or operated by the government and operate for profit.

Retail

The sale of goods and services directly to consumers for personal use, conducted through various channels like stores, online platforms, or direct sales.

Scrambled Merchandising

Selling goods and services that may be unrelated to each other and to the firm’s original business.

Corporate Chain

A series of businesses or retail outlets owned and operated by a single company.