CFA Practice Question

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CFA Practice Question

If a company had 10,000 common shares outstanding for the first three months of the year, 12,000 common shares outstanding for the next three months of the year, and 15,000 shares outstanding for the last six months of the year, the weighted-average number of common shares outstanding is ______.
Correct Answer: 13,000

10,000 shares X 3/12 = 2,500. 12,000 shares X 3/12 = 3,000. 15,000 shares X 6/12 = 7,500. Weighted-average shares outstanding: 2,500 + 3,000 + 7,500 = 13,000

User Contributed Comments 12

User Comment
rethan Is this answer correct?
Doing the weighted number of shares using Synner's method (from previous question) which I believe to be correct
10,000X12/12 + 2,000X9/12+5,000X6/12
Should it not be 14K instead of 13K
chessdude rethan: it should be 10,000X12/12 + 2,000X9/12+3,000X6/12 = 13,000. the answer is correct.
gazelle How can we find this result using the HP 12C?
viannie Gazelle:

10,000 enter 3 sigma+ (this key is below #3)
12,000 enter 3 sigma+
15,000 enter 6 sigma+
punch in g (blue button) then x, w (key=#6)
miiyeung (10sh*12mnth outst + 2*9 + 3*6)/12 = 13k

10k*12mnthOutst + (12k-10k)*9 + (15k-12k)*9 = 13k

Think of the shares as when it is issued...

so issuing 2000 shares on April 01 or March31.

Issue 3000 new shares June31 or July01.

and 10 000 shares common stock outstanding in January01 or Dec31

hmm.. can this be calculated on BA II calculator? no HP on me..
linhtran32 thx chessdude
bundy it takes 2 seconds in your head don't need a calculator
cleopatraliao Here it doesn't talk about additional don't have to add the values together...i got stuck on that :(:(
gulfa99 take the average of the first two..since the first two are for as of March and June closing. 10+12/2 = 11k outstanding as of June end. Next take the average of 11 + 15 /2 = 13
average of June and december
kondagadu This is easier I feel...

leon121 Or what I did was:
10,000 + 2,000*9/12 + 3,000*6/12 = 13
maryprz14 tricky
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