When a midyear stock dividend increases the number of common shares outstanding for the period, the new shares resulting from the dividend are weighted by one-half a year for purposes of computing EPS.

Question

Quizplus · Accepted Answer

The new shares resulting from a midyear stock dividend are weighted for the portion of the year they are outstanding, not automatically by one-half a year. The weighting depends on when during the year the stock dividend occurs.

When a Midyear Stock Dividend Increases the Number of Common