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17 March, 21:42

On january 1, 2008, dingler corporation had 125,000 shares of its $2 par value common stock outstanding. on march 1, dingler sold an additional 250,000 shares on the open market at $20 per share. dingler issued a 20% stock dividend on may 1. on august 1, dingler purchased 140,000 shares and immediately retired the stock. on november 1, 200,000 shares were sold for $25 per share. what is the weighted-average number of shares outstanding for 2008?

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  1. 17 March, 22:08
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    Answer: 375000

    Explanation:

    Given the following information;

    January 1, 2008, Dingler corporation had 125,000 shares of its $2 par value common stock outstanding. on March 1, Dingler sold an additional 250,000 shares on the open market at $20 per share. Dingler issued a 20% stock dividend on May 1. on August 1, Dingler purchased 140,000 shares and immediately retired the stock. on November 1, 200,000 shares were sold for $25 per share.

    The weighted average number of shares outstanding for 2008 can be calculated as thus;

    { (125000 * 2 * 1.20) + (375000 * 2 * 1.20) + (310000 * 3) + (450000 * 3) + (510000 * 2) : 12 }

    [300000 + 900000 + 930000 + 1350000 + 1020000 ] : 12

    4500000 : 12

    = 375000
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