I would like to know number of shares to be counted for earnings in the following scenario. Is there any difference to calculate one vs other? Scenario 1: Jan 1: 120,000 Outstanding May 1: 30,000 issued June 1: 2 for 1 stock split Scenario 2 Jan 1: 120,000 Outstanding May 1: 2 for 1 stock split June 1: 30,000 issued
Scn 1 120 * 12/12 * 2 + 30 * 8/12 * 2 = 240 + 40 = 280 Scn 2: 120 * 12/12 * 2 + 30 * 7/12 = 240 + 17.5 = 257.5 CP
scenario 1: stock split applies to ALL outstanding shares scenario 2: stock split applies ONLY to th 120,000 (tip: do them in order)