# No. of shares

guys Am I right in thinking this question’s solution is incorrect? Zimmer Co. had the following common shares outstanding: January 1, 2003 50,000 October 1, 2003 issued 20,000 shares March 1, 2004 issued a 10% stock dividend July 1, 2004 declared a 2 for 1 stock split October 1, 2004 repurchased 30,000 shares Calculate the weighted average number of common shares outstanding for 2003 and 2004. 2003 2004 A) 55,000 146,500 B) 10,000 124,000 C) 55,000 124,500 D) 70,000 124,000 The correct answer was A) 55,000 146,500 For year 2003: 50,000 × 12 = 600,000 20,000 × 3 = 60,000 660,000/12 = 55,000 For year 2004: 70,000 × 1.1 × 2 =154,000 × 12 =1,848,000 (30,000) × 3 = (90,000) 1,758,000/12 =146,500 Why do they start with 70 000?

Because as at end of 2003 there were 50,000+20,000 = 70,000 shares so you start off 2004 with 70,000 shares

ah bugger I see it now. although the weighted avg no. of shares was 55,000, the actual number of shares was 70,000. thanks for that jeez I hate FSA

Thanks for great example… i did the same thing with starting off w 55,000 shares first…

schweser has good problems …i mean the QBank

I like that made me smile cuz I was fooled. Fool me once fsa… never fool me again… that how it goes?

to paraphrase the great Dubbya: “There’s an old…saying in Tennessee…I know it’s in Texas, probably in Tennessee that says Fool me once FSA…… Shame on……Shame on you….…Fool me…Can’t get fooled again.”