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how to calculate weighted average number of shares. The number of weighted average shares outstanding is used in calculating metrics such as Earnings per Share EPS Earnings Per Share Formula EPS EPS is a financial ratio which divides net earnings available to common shareholders by the average outstanding shares over a certain period of time. The EPS calculated using the Weighted Average Shares Outstanding is actually the Basic EPS The formula is as follows.
Calculating The Weighted Average For Eps Ias 33 Chartered Education from www.charterededucation.com
When we look at the 800 issued shares and multiply them by 912 we get 600 and add them to the 1000 outstanding at the start of the year we get 1600 average shares. The weighted average calculation incorporates the beginning number of shares outstanding plus additional shares that were sold or otherwise issued during the period. Summing the two weighted averages gives the year-end weighted average shares.
How to Calculate Weighted Average Shares Outstanding.
The number of shares given in the SFP at the year-end - may not be the number of shares in issue ALL year. Steps to Calculate Weighted Average Shares Outstanding The first step is to find the common shares count at the beginning of the year along with the changes in common. This is the number to use as the denominator in the EPS calculation. How to Calculate Weighted Average Shares Outstanding.
