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 =

Transcribed Image Text:

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 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

Answer rating: 100% (QA)

To calculate the weighted average number of shares for the year we need to take into account the per... View the full answer