Thus, the weighted average<em> number of shares</em> that Myers Corporation will use in the calculation of diluted earnings per share for 20X1 is 386,500.
Data and Calculations:
<u>Date of Issue</u> <u>No. of Share</u> Weight Weighted-Average
Outstanding, Jan.1 300,000 12/12 300,000
February 1 48,000 11/12 44,000
August 1 (Treasury stock) (18,000) 5/12 (7,500)
Jan. 1 (Stock options) 50,000 12/12 50,000
Weighted average number 386,500
In calculating the weighted average number of shares, the weight of each share issuance is dependent on the <em>number of months</em> that it has remained <em>outstanding</em>.
Thus, the weighted average<em> number of shares</em> that Myers Corporation will use in the calculation of diluted earnings per share for 20X1 is 386,500.
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