[shawnl112]

Does anyone know how we get “1/52” for “1,040 x 1/52 = (20)” ?

thanks

X Co. had the following transactions during the fiscal year ended June 30, Year 2:

Beginning stock balance, July 1, Year 1 100,000 shares

2 : 1 stock split, September 30, Year 1

Issuance of additional shares, January 1, Year 2 50,000 shares

Repurchase of shares, June 23, Year 2 1, 040 shares

What was X Co.’s weighted average number of shares outstanding at June 30, Year 2:

a. 224,980

b. 225,140

c. 251,040

d. 151,040

Answer is A. 224,980

Beginning balance 100,000 x 12/12 = 100,000

Stock split 100,000 x 12/12 = 100,000

Sales of shares 50,000 x 6/12 = 25,000

Repurchase 1,040 x 1/52 = (20)

Total 224,980