Question

On january 1, 2008, dingler corporation had 125,000 shares of its $2 par value common stock outstanding. on march 1, dingler sold an additional 250,000 shares on the open market at $20 per share. dingler issued a 20% stock dividend on may 1. on august 1, dingler purchased 140,000 shares and immediately retired the stock. on november 1, 200,000 shares were sold for $25 per share. what is the weighted-average number of shares outstanding for 2008?

Answer 1

Answer: 375000

Step-by-step explanation:

Given the following information;

January 1, 2008, Dingler corporation had 125,000 shares of its $2 par value common stock outstanding. on March 1, Dingler sold an additional 250,000 shares on the open market at $20 per share. Dingler issued a 20% stock dividend on May 1. on August 1, Dingler purchased 140,000 shares and immediately retired the stock. on November 1, 200,000 shares were sold for $25 per share.

The weighted average number of shares outstanding for 2008 can be calculated as thus;

{(125000 × 2 × 1.20) + (375000 × 2 × 1.20) + (310000 ×3) + (450000 × 3) + (510000 × 2) ÷ 12 }

[300000 + 900000 + 930000 + 1350000 + 1020000 ] ÷ 12

4500000 ÷ 12

= 375000