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    Weighted average shares outstanding

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    On January 1, 2007, Yarrow 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 2007.

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    Solution Preview

    The weighted average number of shares must be restated retroactively for the stock dividend. These shares are assumed to have been ...

    Solution Summary

    The solution explains how to calculate the weighted average shares outstanding

    $2.49

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