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Weighted average number of shares

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On January 1, 2009, Akinrimisi Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On October 1, the corporation purchased on the market 600,000 of its own outstanding shares and retired them.

Instructions

Compute the weighted average number of shares to be used in computing earnings per share for 2009.

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The solution explains how to calculate the weighted average number of shares

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See Also This Related BrainMass Solution

Compute the weighted average number of common shares outstanding. Compute the basic earnings per share.

On December 31, 1998, Mistery Inc. had 450,000 shares of no-par common stock issued and outstanding. All shares were sold for $7.50. On June 30, 1999, the firm issued an additional 135,000 shares for $7.00 per share. The 1999 income was $319,200. On September 1, 2000, a 15% stock dividend was issued to all common shareholders. On October 1, 2000, 60,000 shares were reaquired as treasury shares. Net income in 2000 was $278,063.

Compute the weighted average number of common shares outstanding for 1999 and 2000 that should be shown on comparative statements at the end of 2000.

Compute the basic earnings per share in 1999 and 2000 to be reported on comparitive statements at the end of 2000.

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