Riverbed Corporation had 116,400 shares of stock outstanding on
January 1, 2020. On May 1, 2020, Riverbed issued 63,600 shares. On
July 1, Riverbed purchased 9,120 treasury shares, which were
reissued on October 1.
Compute Riverbed’s weighted-average number of shares outstanding
for 2020.
Weighted-average number of shares outstanding |
Answer:
Weighted average number of shares | 156,520 |
Calculations:
Weighted average number of shares | ||
Calculations | Weighted shares | |
January 1 to May 1 [4 months] | 116,400 x 4/12 | 38,800 |
May 1 to July 1 [2 months] | [116,400 + 63,600] x 2/12 | 30,000 |
July 1 to October 1 [3 months] | [116,400 + 63,600 - 9,120] x 3/12 | 42,720 |
October 1 to December 31 [3 months] | [116,400 + 63,600 - 9,120 + 9,120] x 3/12 | 45,000 |
Weighted average number of shares | 156,520 |
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