Answer:
b. 663,000
Explanation:
Outstanding shares refers to the total number of stock held by investors at a particular time. They are the shares issued out to both retail and institutional investors and insiders, such as directors and employees. Outstanding shares will exclude shares that have been repurchased back by the issuing company (treasury stock).
The weighted average share outstanding takes into consideration the duration of time that issued stocks have been in the markets. It allocates value proportionately to the time in the market.
For Millo Co, the weighted average share outstanding for the year will be
1. January 1, 600,000
2. May 1, issued 126,000 shares ( 8 months)
weighted for the year=8/12 x 126,000 = 84,000
3. September 1, purchased 63,000 treasury stock
(4 months) weighted value will be
= 4/12 x 63,000= 21,000
The weighted average share outstanding
Beginning balance plus shares issued out minus repurchased shares(treasury stock)
=600,000 + 84,000 -21,000
=663,000
