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View Full Version : Compute the weighted average of the common stock outstanding


bdesde
Oct 25, 2008, 02:54 PM
I am having problems with computeing the weighted average of the common share outstanding for year 2008. Here in the information. Can anyone please help me.

Outstanding share on December 31, 2002 $40,000

2003
Treasury stock purchase on April 1 -$4,000
Issuance of new shares on June 30 +$12,000
10% stock dividened on October 1 + 4,800

Outstanding shares on December 31,2003 52,800

hamzashakaa
Oct 26, 2008, 06:51 AM
Shares outstanding last year 40,000
Treasury stock purchase (4000/12)*9 (3,000)
Issuance of new shares (12000/12)*6 6,000
Total 43,000
10% Stock dividends (1.1*43000) 47,300
4,800 stock dividend 4,800
Total Shares outstanding 52,100

Note that stock dividends is supposed to be issued at the beginning of the year.