Which of the following will require a recalculation of weighted-average shares outstanding for all years presented?

A) Stock dividends and stock splits.

B) Stock dividends but not stock splits.

C) Stock splits but not stock dividends.

D) Stock rights.

Question

Camryn Steele

Business

25 February, 15:53

Which of the following will require a recalculation of weighted-average shares outstanding for all years presented?

A) Stock dividends and stock splits.

B) Stock dividends but not stock splits.

C) Stock splits but not stock dividends.

D) Stock rights.

+2

Answers (1)

Know the Answer?

Anneliese · Answer 1

The correct option is A, stock dividends and stock splits

Explanation:

Stock dividends refers to paying dividends by issuing more shares to shareholders instead of paying in cash which may be required to fund investment projects, since it increases the number of shares overall, it requires re-computation of weighted average number of shares.

Stock splits means splitting the current number of shares into multiples in order to reduce the price per share making it affordable to investors, hence the number of weighted average shares is also impacted.

Which of the following will require a recalculation of weighted-average shares outstanding for all years presented?A) Stock dividends and stock splits.B) Stock dividends but not stock splits.C) Stock splits but not stock dividends.D) Stock rights.

Which of the following will require a recalculation of weighted-average shares outstanding for all years presented?

A) Stock dividends and stock splits.

B) Stock dividends but not stock splits.

C) Stock splits but not stock dividends.

D) Stock rights.