Steve Jobs' restricted stock
Ainsworth Inc. EPS, net loss, stock dividend, preferred stock, treasury stock, extraordinary loss
1. We first calculate the weighted average shares outstanding (figures in million)
Beginning shares = 600. Since there is a stock dividend of 5% on June 12, the beginning shares will be adjusted and will be 600 X 1.05 = 630. These shares are outstanding till April 30 = 4 months.
On April 30, 30 shares are repurchased, adjusting for stock dividend = 30X1.05 = 31.5. Outstanding shares = 630-31.5 = 598.5. These are outstanding till Aug 30 = 4 months
On Aug 30, 12 shares are resold, so outstanding shares = 598.5 + 12 = 610.5. These are outstanding till year end = 4 months
Weighted average ...
The solution explains two accounting questions P19-6 Ainsworth Inc - calculation of net loss per share, EPS presentation and P19-1 Apple Inc - Steve Jobs restricted stock, tax effectos