Let’s say that a company had 100,000 shares outstanding at the beginning of the year and issued 30,000 more shares on May 1. The 100,000 shares would be outstanding for four months and the 130,000 shares for eight months, or two-thirds of the year. The weighted average number of shares outstanding for the year would be:
Answer(s): B
Continuing the above example, if earnings were $30,000, earning per share would be:
Answer(s): A
Book value per share is based on the number of shares outstanding at the end of accounting period rather than the weighted average used in computing earnings per share. Also, book value normally is computed without considering:
Situations commonly requiring the valuation of option are all of the following EXCEPT:
Answer(s): D
___________ is common stock received when the option is exercised.
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