Answer:
The weighted average shares outstanding for the year is 859,000.
Explanation:
Jan.1: outstanding shares 790,000: (790,000 x 12) = 9,480,000
May.1: Issued additional 121,000 shares: (121,000 x 8) =968,000
Sep.1: Purchase 60,000 shares of T.S: (60,000 x 4) = (240,000)
Nov.1: Issued additional 50,000 shares: (50,000 x 2) =<u>100,000</u>
= 10,308,000
Note: We take the number of months from the transaction date to the months remaining in the year end.
Weighted Average Outstanding Shares = <u>10,308,000</u>
12
Weighted Average Outstanding Shares = 859,000
