What is the equation for the weighted average shares of common stock outstanding? (NIE 9) (Beginning Shares 0.5)(Ending Shares 0,5) Ending Shares number of times the shares changed during the year 12 (Beginning Shares Ending Shares) / 2 None of these are correct
What is the equation for the weighted average shares of common stock outstanding? (NIE 9) (Beginning Shares 0.5)(Ending Shares 0,5) Ending Shares number of times the shares changed during the year 12 (Beginning Shares Ending Shares) / 2 None of these are correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the equation for the weighted average shares of common stock outstanding? (NIE 9) (Beginning Shares 0.5)(Ending Shares 0,5) Ending Shares number of times the shares changed during the year 12 (Beginning Shares Ending Shares) / 2 None of these are correct .
Expert Solution
Step 1
The weighted average number of shares is calculated by multiplying number of outstanding shares with the percentage of the reporting period for which that number applies for each period.
That means the we takes the number of shares outstanding in each month weighted by the number of months that those shares were outstanding.
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