# EPS

> > Shares for Diluted: > > 1.5*100,000*3/12+ > 1.5*(100,000+50,000)*3/12+(1.5*150,000+50,000)*3/1 > 2+(1.5*150,000+50,000+10,000)*3/12=233,750 > > Diluted EPS=5,000,000/233,750=21.39 Map, can you explain how did you calculate the weighted average number of shares outstanding for the above? I mean, where this numbers come from…I know how it works but I want just to be really clear with EPS because in the solution they use a slightly different methology…so I dont want to mess up with this

I’ll use thousands, it is easier on eyes with the 0s:) 100 existing at the beginning of the year gets hit with the scrip, existing from Jan to April1, 3/12 of the year At April 1, there is an issue of 50 plus the existing at the beginning of the year (100), that gets hit by the scrip, existing from April 1 to July 1, 3/12 of the year At July 1st, conversion of the preferred, 50 new as a plus to those that existed at June 30, existing from July 1 to October 1, 3/12 of the year At October 1st, issue of new 10, that adds to the existing at September 30, From Oct 1 to Dec 31, 3/12 of the year Add them all

map1 Wrote: ------------------------------------------------------- > I’ll use thousands, it is easier on eyes with the > 0s:) > > 100 existing at the beginning of the year gets hit > with the scrip, existing from Jan to April1, 3/12 > of the year > At April 1, there is an issue of 50 plus the > existing at the beginning of the year (100), that > gets hit by the scrip, existing from April 1 to > July 1, 3/12 of the year > At July 1st, conversion of the preferred, 50 new > as a plus to those that existed at June 30, > existing from July 1 to October 1, 3/12 of the > year > At October 1st, issue of new 10, that adds to the > existing at September 30, From Oct 1 to Dec 31, > 3/12 of the year > > Add them all Thanks!!! Grazie mille! In the solution I have they just add 25000 to the weighted average number of shares calculated under the basic EPS

Which is correct, since the 50,000 is outstanding only half of the year, so the addition would be exactly 50*6/12=25,000