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

Question

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

Quizplus · Accepted Answer

The formula for WASO is (number of shares x portion of year) + (number of shares x portion of year) + ... For this example, there are two different portions of the year with different numbers of shares: 100,000 shares were outstanding for the first 10 months and then 200,000 shares were outstanding for the last 2 months. Therefore, the WASO calculation is:
(100,000 x 10/12) + (200,000 x 2/12) = 159,167 shares. Choice B is the closest option to this answer.

Use the Following Information to Calculate the "Weighted Average Number