A company had 48,000 shares outstanding from January 1 to June 1 and 72,000 shares outstanding from June 1 to December 31. What is the weighted-average number of shares used in earnings per share calculations?

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Quizplus · Accepted Answer

The weighted-average number of shares is calculated by considering the time each share count was outstanding. For 5 months (January to May), there were 48,000 shares, and for 7 months (June to December), there were 72,000 shares. The calculation is: (48,000 shares * 5/12) + (72,000 shares * 7/12) = 20,000 + 42,000 = 62,000 shares.

A Company Had 48,000 Shares Outstanding from January 1 to June