Question: Attached below are just the example computation. Shares issued on January 1 = 15,000 Issued Shares on March 31 = 10,000
Attached below are just the example computation.
Shares issued on January 1 = 15,000
Issued Shares on March 31 = 10,000
Shares brought back June 1 = 1,000
Shares brought back Aug 1 = 7,500
Shres Issued on Oct 31 = 25,000
Profit Attribution to shares = 150,000
Compute the ESP =

Warm-up: Issued shares on Jan 1, 2020 Shares brought back on June 1, 2020 Issued shares on Aug 31, 2020 PROFIT TO ORDINARY SHARES 1,000 250 3,000 15,000 Jan-01 1,000 sh x 5/12 417 Jun-01 750 sh x 3/12 188 Aug-31 3750 sh x 4/12 1,250 1,855 EPS: 15,000/1,855 = 8.09
Step by Step Solution
There are 3 Steps involved in it
To calculate the weighted average number of shares for the year we need to take into account the per... View full answer
Get step-by-step solutions from verified subject matter experts
