Transactions in Common Shares Jan. 1, 2022, Beginning number May 1, 2022, Purchase of treasury shares Sep. 1, 2022, Stock split 3-1 Oct. 1, 2022, Issuance of shares 7% Cumulative Convertible Preferred Stock Sold at par, convertible into 150,000 shares of common (already adjusted for split). Stock Options Exercisable at the option price of $25 per share. Average market price in 2022, $37.50 (market price and option price already adjusted for split). Required: a) Compute weighted average shares outstanding for 2022. Change (90,000) 1,420,000 340,000 800,000 710,000 2,130,000 2,470,000 $1,000,000 75,000 shares
Transactions in Common Shares Jan. 1, 2022, Beginning number May 1, 2022, Purchase of treasury shares Sep. 1, 2022, Stock split 3-1 Oct. 1, 2022, Issuance of shares 7% Cumulative Convertible Preferred Stock Sold at par, convertible into 150,000 shares of common (already adjusted for split). Stock Options Exercisable at the option price of $25 per share. Average market price in 2022, $37.50 (market price and option price already adjusted for split). Required: a) Compute weighted average shares outstanding for 2022. Change (90,000) 1,420,000 340,000 800,000 710,000 2,130,000 2,470,000 $1,000,000 75,000 shares
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following
Net Income
Transactions in Common Shares
Jan. 1, 2022, Beginning number
May 1, 2022, Purchase of treasury shares
Sep. 1, 2022, Stock split 3-1
Oct. 1, 2022, Issuance of shares
7% Cumulative Convertible Preferred Stock
Sold at par, convertible into 150,000 shares of common
(already adjusted for split).
Stock Options
Exercisable at the option price of $25 per share. Average
market price in 2022, $37.50 (market price and option price
already adjusted for split).
Required:
a) Compute weighted average shares outstanding for 2022.
Change
(90,000)
1,420,000
340,000
$2,750,000
Cumulative
800,000
710,000
2,130,000
2,470,000
$1,000,000
75,000 shares
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