shares outstanding on january 1 1,000,000 shares issued on 1 april 200,000 shares repurchased 1 october 100,000 weighted avg number of shares outstanding…??? 1,000,000 * 12 = 12,000,000 + 200,000* 9 = 1,800,000 + 100,000 * 3 = 300,000 - 13,50,000/12 = 1,125,000 is this right?? plz help thanks… the way in CFA text is different than schweser…
1/1 1000 * 12/12 = 1000 4/1 200 *9/12 = 150 10/1 -100 * 3/12 = -25 So 1125 your answer is correct.
My calculation: Weighted avg number of shares outstanding = 1.000.000*12 _ 200.000*9-100*.000*3=13.500.000 The shares repurchased are not exit in the market so it should be minus from shares outstanding
cpk123 Wrote: ------------------------------------------------------- > 1/1 1000 * 12/12 = 1000 > 4/1 200 *9/12 = 150 > 10/1 -100 * 3/12 = -25 > > So 1125 > > your answer is correct. Opp…cpk123, I missed the weighted average 
You are correct. Thank you.
I correct my mistake by dividing the above result of 13.500.000 to 12 months then the final result should be 13.500.000/12=1.125.000
Ok, We need to find the weighted average of shares. 1 1,000,000 is outstanding for 12 months. 200,000 is outstanding for 9 months 100,000 is repurchased for 3 months. so wt average of shares= ((1 1,000,000*12)+(200,000*9)-(100,000*3))/(12)=1958333
I dont know whether I pressed the calculator accurately on the previous question
I dont know whether I pressed the calculator accurately on the previous post
prasenjit – you have typed in 1 1000,000 instead of 1000000 the problem reads on Jan 1 -> 1000000 shares.
ok…so then no of shares will be, by the same process, taking first one as 1000000 , 1125000 Please let me know if the way to right to calculate no of shares.
yes