Robinson Company had 1 million shares outstanding at the beginning of the year. On April 1, Robinson issued an additional 300,000 shares. On July 1, Robinsonissued 200,000 more shares. What is Robinson's weighted average number of shares outstanding for the calculation of earnings per share

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Business

Abbie York

31 October, 04:00

Robinson Company had 1 million shares outstanding at the beginning of the year. On April 1, Robinson issued an additional 300,000 shares. On July 1, Robinsonissued 200,000 more shares. What is Robinson's weighted average number of shares outstanding for the calculation of earnings per share

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Zackary Willis · Answer 1

Weighted shares = 1,325,000

Explanation:

The shares issued by Robinson Company are wieghted below

From last year 1 million shares were issued so they have full weight.

As at April this year 300,000 shares were issued. There are 9 months remaining in the year of 12 months, so weight is (9/12) * 300,000

At July 200,000 shares are issued with outstanding 6 months in the year of 12 months. Weight is (6/12) * 200,000

To get total weighted shares add all weights for issued shares.

Weighted shares = 1,000,000 + (9/12) * 300,00 + (6/12) * 200,000

Weighted shares = 1,000,000 + 225,000 + 100,000

Weighted shares = 1,325,000