When calculating the weighted average number of common shares, how are stock dividends and stock splits treated? Compare this treatment with that of additional shares sold for cash in midyear.
Answer to relevant QuestionsBlake Distributors had 100,000 common shares outstanding at the beginning of the year, January 1. On May 13, Blake distributed a 5% stock dividend. On August 1, 1,200 shares were retired. What is the weighted average number ...How is the potentially dilutive effect of convertible preferred stock reflected in EPS calculations by the if-converted method? How is this different from the way convertible bonds are considered?The fair value of stock options can be considered to comprise two main components. What are they?Refer to the situation described in BE 19-6. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 5% in three years. What action will be taken to account for the ...On January 1, 2011, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. On the grant date, the shares have a market price of ...
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