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Subject Topic: Teasury Stock and a Stock Split (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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divyagovil1
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Posted: 08 Apr 2009 at 13:22 | IP Logged  

agreed.... in hurry, i simply provided the shares outstanding, not weighted average.... for treasury stock, weighted avg is applied from the date it is purchased, that is, for 7 months !

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cinnamon
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Posted: 08 Apr 2009 at 16:20 | IP Logged  

Oh yes, 7 months! I though it was June 30! Oups!
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jrupa
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Posted: 08 Apr 2009 at 20:21 | IP Logged  

i am not able to understand divya can u pls explain according to becker method by making table .. pls
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divyagovil1
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Posted: 09 Apr 2009 at 23:44 | IP Logged  

jrupa wrote:
i am not able to understand divya can u pls explain according to becker method by making table .. pls

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



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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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spaztikenigma
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Posted: 10 Apr 2009 at 11:38 | IP Logged  

What is the difference between issued and outstanding? Does issued include Treasury Stock? Does outstanding include purchased, unpurchased, or both?

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