Rudd Corp. had 700,000 shares of common stock authorized and 300,000 shares outstanding at December 31, Year 1. The following events occurred during Year 2:
January 31 Declared 10% stock dividend
June 30 Purchased 100,000 shares
August 1 Reissued 50,000 shares
November 30 Declared 2-for-l stock split
At December 31, Year 2, how many shares of common stock did Rudd have outstanding?
The answer is B and I know how they got that, they just added and subtracted the shares. But i have question, why didn't we do the shares multiplied by the months it was used in? I know it has to be in the call of the question but how do i know which one to do. The reason why i'm asking is because i sat there multiplying each share by the months