Question

George Manufacturing had net income of $ 300 comma 000 and declared preferred dividends of $ 20 comma 000 during the current year. George began the year with 14 comma 000 common shares outstanding. It issued 40 comma 000 shares on June 30 and repurchased 6 comma 000 of the newly issued shares on November 1. Compute​ George's weightedminusaverage common shares outstanding for the year.

Answer 1

33,000 shares

Step-by-step explanation:

The computation of the weighted - average common shares outstanding is shown below:

= Outstanding common shares + Issued shares × number of months ÷ total number of months in a year - repurchased shares × number of months ÷ total number of months in a year

= 14,000 shares + 40,000 shares × 6 months ÷ 12 months - 6,000 shares × 2 months ÷ 12 months

= 14,000 shares + 20,000 shares - 1,000 shares

= 33,000 shares