Outdoor Recreation Products Inc. had 50,000 shares of common stock outstanding at the end of 2010. During

Question:

Outdoor Recreation Products Inc. had 50,000 shares of common stock outstanding at the end of 2010. During 2011 and 2012, the following transactions took place.

2011

Mar. 31 Sold 10,000 shares at $24.

Apr. 26 Paid cash dividend of $0.45 per share.

July 31 Paid cash dividend of $0.20 per share and issued a 5% stock dividend.

Nov. 1 Sold 12,000 shares at $25.

2012

Feb. 28 Purchased 8,000 shares of common stock to be held in treasury.

Mar. 1 Paid cash dividend of $0.50 per share.

Apr. 30 Issued 4-for-1 stock split.

Nov. 1 Sold 10,000 shares of treasury stock.

Dec. 20 Declared cash dividend of $0.15 per share.

Outdoor Recreation Products Inc. has a simple capital structure.

Instructions:

Compute the weighted-average number of shares for 2011 and 2012 to be used in the EPS computation at the end of 2012.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...