Which Statement Is Correct About "Weighted Average Number of Ordinary

question 88

Multiple Choice

Which statement is correct about "weighted average number of ordinary shares outstanding"?

• A)Treasury shares that are cancelled are adjusted in this calculation.
• B)Treasury shares that are not cancelled are adjusted in this calculation.
• C)Treasury shares that are repurchased are adjusted in this calculation.
• D)Treasury shares are ignored for purposes of this calculation.

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Definitions:

Working Capital

The gap between an organization's current assets and its current liabilities, reflecting the business's short-term fiscal stability and operational effectiveness.

Salvage Value

The projected sales value of an asset at the termination of its effective life.

Financially Attractive

Describes opportunities or investments that are likely to provide a good return or prove to be profitable.

Discount Rate

The discount rate applied in DCF analysis to calculate the current value of future cash streams.