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formula for weighted average common shares outstanding. The weighted average basic shares outstanding is the average number of shares that were outstanding over the time period. Since no new shares were issued in this case each month had 100 thousand shares outstanding and hence over the year the Company had 1 thousand shares outstanding.
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Diluted EPS 235. The weighted average basic shares outstanding is the average number of shares that were outstanding over the time period. Using a simple average formula the average number of shares outstanding would be 15000 30000 2 15000.
In the second period multiply 150000 shares times 05 to get 75000 outstanding shares.
The formula for shares outstanding is quite straight and simple and it can be derived by deducting the number of treasury stock from the number of issued stock of the company. Basic EPS Net Income Preferred Dividends Weighted Average Shares Outstanding where. Applying the time proportionate weight to each outstanding in terms of month you get. 20000 shares X 112th of year X 11 stock dividend X 3 stock split 5500 shares.
