Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Common Stock Average Issue PRice (https://www.askmehelpdesk.com/showthread.php?t=187045)

  • Feb 22, 2008, 01:54 PM
    cdoner
    Common Stock Average Issue PRice
    How do I calculate the average issue price of common stock and preferred stock?
    Thanks for your help!
  • Feb 22, 2008, 08:00 PM
    morgaine300
    An average is just totaling everything and dividing by how many you have. However, this likely would be a weighted average. That is, if you had only issued one share each at $10, $12 and $13, you could just average those 3 numbers. But you're issuing a lot of shares at once. So you have to multiply them all out to account for the total number of shares sold in that average. For example, if you had the following sales:

    1000 @ $10 = 10,000
    2000 @ $12 = 24,000
    1500 @ $13 = 19,500

    So you actually have 4500 shares, and $53,500 of total issuance prices. i.e. you don't have 3, because each price has be "weighted" by the number of shares. ($12 weights the most cause there's more of them.) So 53,500/4500 = $11.89 average per share.
  • Feb 24, 2008, 06:28 PM
    cdoner
    Thank you so much. I wasn't thinking all lines together.

  • All times are GMT -7. The time now is 09:51 PM.