Alamo,Inc.had 480,000 shares of common stock outstanding on January 1,2010.An additional 150,000 shares were issued on May 1,2010,and 60,000 shares were repurchased on October 1,2010.The weighted average number of shares outstanding during 2010 was:

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To calculate the weighted average number of shares outstanding, we account for the time each change in shares outstanding was in effect during the year. 1. Start with 480,000 shares outstanding at the beginning of the year.2. On May 1, an additional 150,000 shares were issued, making it 630,000 shares for 8 months (May through December).3. On October 1, 60,000 shares were repurchased, reducing it to 570,000 shares for the last 3 months of the year.Calculation:- 480,000 shares for 4 months = 1,920,000 (share-months)- 630,000 shares for 5 months = 3,150,000 (share-months)- 570,000 shares for 3 months = 1,710,000 (share-months)Total share-months = 1,920,000 + 3,150,000 + 1,710,000 = 6,780,000Weighted average = Total share-months / 12 months = 6,780,000 / 12 = 565,000 shares

Alamo,IncHad 480,000 Shares of Common Stock Outstanding on January 1,2010