Was going through a practice and was wondering why is for a question like this July is calculated as 6/12 instead of 7/12.
For 2009, Flamingo Products had net income of $1,000,000. At 1 January 2009,
there were 1,000,000 shares outstanding. On 1 July 2009, the company issued
100,000 new shares for $20 per share. The company paid $200,000 in dividends
to common shareholders. What is Flamingo’s basic earnings per share for 2009?