Chut Posts: 1, Reputation: 1 New Member #1 Dec 1, 2007, 06:14 PM
Computing weighted average of common shares outstanding
Hello,

I am working on some Accounting homework and I am completely stuck. This is the problem

Outstanding shares of December 31, 2003 52,800
Issuance of new shares on July 1 +16,000
Treasury stock purchase on November 1 - 4,800
Outstanding shares on December 31, 2004

1. Compute the weighted average of the common shares outstanding for year 2004.

Can anyone explain this to me
 terryg752 Posts: 197, Reputation: 4 Junior Member #2 Dec 2, 2007, 03:46 AM
NB : I may be wrong.
Am Not An expert.

What is Weighted Average in such case?

However, WHAT could be the reason for finding weighted average of the common shares outstanding?

Perhaps to calculate dividends.

In that case, New shares were held for only half the year.

So weighted average may be: 52,800 + 1/2 times 16,000.

= 52800 + 8000 = 60800 shares.
 Hermansherman Posts: 37, Reputation: 4 Junior Member #3 Dec 3, 2007, 03:43 PM
Originally Posted by Chut
Hello,

I am working on some Accounting homework and I am completely stuck. This is the problem

Outstanding shares of December 31, 2003 52,800
Issuance of new shares on July 1 +16,000
Treasury stock purchase on November 1 - 4,800
Outstanding shares on December 31, 2004

1. Compute the weighted average of the common shares outstanding for year 2004.

Can anyone explain this to me
6 months at 52,800
4 months at 68,800
2 months at 64,000

weighted average = (6*52.8+4*68.8+2*64)/12= 60,000

 Question Tools Search this Question Search this Question: Advanced Search

## Check out some similar questions!

Weighted average shares calculation [ 1 Answers ]

I need to Know the commonly accepted way to calculate the weighted average shares for EPS calculations. Could someone give examples?

Outstanding shares [ 2 Answers ]

How do I find the outstanding shares, effect of dividend, fraction of a year, andweighted average? Year 2003 Outstanding shares December 31, 2oo2 40,000 Outstanding shares on dec 31, 2003 52,800 Outstanding shares on dec 31 2004 64,000 Outstanding shares on...

Outstanding shares [ 1 Answers ]

Can someone look at this ant tell me what I am doing wrong please. The annual income statements for Cortez, Inc. as reported when they were initially published in 2003, 2004, and 2005 follow: Earnings per share calculation and presentation 2003 2004 2005 Net sales.. . ……. \$370,000 425000...