Use the following information to calculate the "weighted average number of ordinary shares outstanding" (WASO)?

Question

Quizplus · Accepted Answer

The weighted average number of ordinary shares outstanding is calculated by multiplying the number of shares outstanding by the fraction of the year for which they were outstanding, and then adding up these values for all of the different time periods. From the information given in the image, we can see that there were 100,000 shares outstanding for the entire year, and an additional 100,000 shares outstanding for the second half of the year. Therefore, the WASO can be calculated as follows:

(100,000 * 1) + (100,000 * 0.5) = 150,000

However, we also need to account for the fact that 25,833 shares were issued on 1 March, which means they were outstanding for only 10 out of 12 months of the year. Therefore, we can adjust the calculation as follows:

(100,000 * 1) + (25,833 * 10/12) + (100,000 * 0.5) = 159,167

Therefore, the best choice is B.

Use the Following Information to Calculate the "Weighted Average Number