In calculating the Weighted Average Shares Outstanding for the purpose of determining the basic earning per share, I was given the value (but not the number) of all the shares outstanding of a company at the beginning of the year (what the investors are willing to pay for 100% of the company), but those shares were originally issued by the company at no par value. How would I determine the number of shares outstanding at the beginning of the year given this information? Should I assume that par value is $0.01,and calculate the number of shares outstanding accordingly? Also, if I’m given information about an additional offering mid-year for example at $5 par value, would the $5 be rather used in the calculation of the number of shares outstanding at beginning of year (dividing the the FV of the company/ $5 to get the number of shares outstanding?
Have you seen any questions on EPS for no par stock?
I don’t recall seeing any.