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how to calculate weighted average common shares outstanding. The weighted average number of shares is calculated by taking the number of outstanding shares and multiplying the portion of the reporting period those shares covered doing this for each portion. For instance if a companys total stock value is 2000000 and there are 2000 shareholders the average outstanding share is 1000.
Earnings Per Share And Other Indicators Principlesofaccounting Com from www.principlesofaccounting.com
1000000 shares outstanding in January 1000000 shares outstanding in February 1000000 shares outstanding in March 1000000 shares outstanding in April 1000000 shares outstanding in May 1100000 shares outstanding in June. These shares are non-dilutive because they do not include any options or securities that can be converted. Divide the total by 12 the number of months in a year to find the weighted average common shares outstanding.
The calculation of its weighted average shares outstanding for the full year is as follows.
When calculating the weighted average number of shares start at the beginning of the year and see what shares were in use at that time. 100000 X 312 25000. The EPS calculated using the weighted average shares outstanding is actually the Basic EPS The formula is as follows. Obtain the number of shareholders.
