Greenwell Coffee Company began operations on the first day of the year.On that day they issued 10,000 shares.On March 1 they issued 20,000 shares and on July 1,another 30,000 shares.On December 1,Greenwell repurchased 5,000 shares of outstanding shares.Compute the weighted-average shares of stock for the first year of operation.

Question

Quizplus · Accepted Answer

To compute the weighted-average shares, we need to multiply the number of shares outstanding for each period by the number of days they were outstanding and then add these products together.

The calculation is as follows:

((10,000 shares x 365 days) + (20,000 shares x 151 days) + (30,000 shares x 182 days) - (5,000 shares x 31 days)) / 365 days = 41,250 weighted-average shares

Therefore, the best choice is C.

Greenwell Coffee Company Began Operations on the First Day of the Year.On