Final answer:
The weighted-average number of shares outstanding can be computed separately for shares issued for cash and shares issued in a stock dividend.
Step-by-step explanation:
To compute the weighted-average number of shares outstanding, we need to calculate the weighted averages separately for the shares outstanding before and after the share issuance.
(a) If the 29,400 shares were issued for cash, we would calculate the weighted-average number of shares outstanding as follows:
Shares outstanding on January 1, 2025: 282,000
Shares outstanding on May 1, 2025: 282,000 + 29,400 = 311,400
Weighted-average shares outstanding = (Shares outstanding on January 1 * Number of months until May 1 + Shares outstanding on May 1 * Number of months after May 1) / Total number of months
Using the formula, we get: (282,000 * 4 + 311,400 * 8) / 12 = 304,200
Therefore, the weighted-average number of shares outstanding if the 29,400 shares were issued for cash is 304,200 shares.
(b) If the 29,400 shares were issued in a stock dividend, the number of shares outstanding remains the same, so the weighted-average number of shares outstanding would be 282,000 shares.