Posted: 09 Apr 2009 at 23:44 | IP Logged
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jrupa wrote:
i am not able to understand divya can u pls explain according to becker method by making table .. pls |
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jrupa, here u go :-
Remember that a stock split, no matter when this occurs during the year, is considered to be retroactive as if it occurred at the beginning of the year.
Since the company repurchased 5,000 shares of the original 100,000, they really repurchased 10,000 shares of the now adjusted 200,000 shares.
So, a summary of weighted avg:
100,000 * 2 * 5/12 = 83,333 95,000 * 2 * 7/12 = 110,833 --------------------194166 --- WACSO
__________________ Divya - CO State
Passed using Becker Review :
FAR - 04/11/09 - 94
BEC - 05/30/09 - 86
REG - 08/29/09 - 95
AUD - 11/21/09 - 92
Ethics - 2011
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