Answer:
weighted-average shares outstanding: 1,075,000
Explanation:
We need to multiply by the shares movements by the months remaining to complete the year. Thus, assinging a weight to each share.
Jan 1st: 375,000 x 12/12(all year) = 375,000
March 1st: 750,000 x 10/12(from March 1st to Dec 31th) = 625,000
May 1st: 20% stock dividends: (375,000 + 750,000) x 20% x 8/12 =
225,000 x 8/12(May 1st to Dec 31th) = 150,000
August 1st: (420,000) x 5/12(August 1st to Dec 31th) = (175,000)
November 1st: 600,000 x 2/12(November 1st to Dec 31th) = 100,000
375,000 + 562,500 + 150,000 - 175,000 + 100,000 = 1,075,000
