The issuance of new shares increases the common share count. In the first 3 months company A had 100000 shares and 110000 shares for such years remaining 9 months. Diluted EPS Formula net income - preferred dividends basic shares conversion of any in-the-money options warrants and other dilutions is derived by taking net income during the period and dividing by the average fully diluted shares outstanding in the period.
Third calculate the updated common share count after each change.
Calculate the updated common shares after each change. Relevance and Use of Shares Outstanding Formula. To calculate the weighted average of outstanding shares take the number of outstanding shares and multiply the portion of the reporting period those shares covered. To calculate the diluted EPS we have to adjust the weighted average number of shares.