80000*12

5000/12

*Source: Retired ICMA CMA Exam Questions.Sol:The weighted average common shares calculation: (120,000 × 2 ÷ 12) + (108,000 × 3 ÷ 12) + (138,000 × 5 ÷ 12) + (198,000 × 2 ÷ 12) = 20,000 + 27,000 + 57,500 + 33,000 = 137,500.I'm not sure why in the solution, they are multiplying 120,000 with 2 months (120,000*2/12), and then (108,000 multiply with 3) and so on?Please help me to understand the concept?

*Source: Retired ICMA CMA Exam Questions.Sol:The weighted average common shares calculation: (120,000 × 2 ÷ 12) + (108,000 × 3 ÷ 12) + (138,000 × 5 ÷ 12) + (198,000 × 2 ÷ 12) = 20,000 + 27,000 + 57,500 + 33,000 = 137,500.I'm not sure why in the solution, they are multiplying 120,000 with 2 months (120,000*2/12), and then (108,000 multiply with 3) and so on?Please help me to understand the concept?

Dear All - I'm looking for your help to understand below question.Roy company had 120,000 common shares and 100,000 preferred shares outstanding at the close of the prior year. During the current year Roy repurchased 12,000 common shares on March 1, sold 30,000 common shares on June 1, and sold an additional 60,000 common shares on November 1. No change in preferred shares outstanding occurred during the year. The number of shares of stock outstanding to be used in the calculation of basic earnings per share at the end of the current year is:

6000/12

*Source: Retired ICMA CMA Exam Questions.Sol:The weighted average common shares calculation: (120,000 × 2 ÷ 12) + (108,000 × 3 ÷ 12) + (138,000 × 5 ÷ 12) + (198,000 × 2 ÷ 12) = 20,000 + 27,000 + 57,500 + 33,000 = 137,500.I'm not sure why in the solution, they are multiplying 120,000 with 2 months (120,000*2/12), and then (108,000 multiply with 3) and so on?Please help me to understand the concept?

60000/13

60000/24

Dear All - I'm looking for your help to understand below question.Roy company had 120,000 common shares and 100,000 preferred shares outstanding at the close of the prior year. During the current year Roy repurchased 12,000 common shares on March 1, sold 30,000 common shares on June 1, and sold an additional 60,000 common shares on November 1. No change in preferred shares outstanding occurred during the year. The number of shares of stock outstanding to be used in the calculation of basic earnings per share at the end of the current year is:

Dear All - I'm looking for your help to understand below question.Roy company had 120,000 common shares and 100,000 preferred shares outstanding at the close of the prior year. During the current year Roy repurchased 12,000 common shares on March 1, sold 30,000 common shares on June 1, and sold an additional 60,000 common shares on November 1. No change in preferred shares outstanding occurred during the year. The number of shares of stock outstanding to be used in the calculation of basic earnings per share at the end of the current year is:

*Source: Retired ICMA CMA Exam Questions.Sol:The weighted average common shares calculation: (120,000 × 2 ÷ 12) + (108,000 × 3 ÷ 12) + (138,000 × 5 ÷ 12) + (198,000 × 2 ÷ 12) = 20,000 + 27,000 + 57,500 + 33,000 = 137,500.I'm not sure why in the solution, they are multiplying 120,000 with 2 months (120,000*2/12), and then (108,000 multiply with 3) and so on?Please help me to understand the concept?

Dear All - I'm looking for your help to understand below question.Roy company had 120,000 common shares and 100,000 preferred shares outstanding at the close of the prior year. During the current year Roy repurchased 12,000 common shares on March 1, sold 30,000 common shares on June 1, and sold an additional 60,000 common shares on November 1. No change in preferred shares outstanding occurred during the year. The number of shares of stock outstanding to be used in the calculation of basic earnings per share at the end of the current year is: