CFA Practice Question

CFA Practice Question

Firm ABC starts with 20,000 shares on Jan 1, 20X0. It sells 12,000 shares for cash on April 1, 20X0, and sells 9,000 shares for cash on Nov 1, 20X0. The number of shares to be used for calculating EPS will be:
A. 20,000
B. 30,500
C. 41,000
Explanation: Number of shares = Initial number + Number issued on April 1 * (9/12) + Number issued on Nov 1 * (2/12) = 20,000 + 12,000 * (9/12) + 9,000 * (2/12) = 30,500

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