Use the following information to calculate the "weighted average number of ordinary shares outstanding" (WASO)? $$\begin{array} { | l | r |}
\hline \text { Ordinary shares, January 1,2013 } & 120,000 \
\hline \text { Shares issued, March 1, 2013 } & 60,000 \
\hline \text { Shares issued, Nov 1, 2013 } & 90,000 \
\hline
\end{array}$$
A)120,000
B)165,000
C)185,000
D)270,000

Question

Use the following information to calculate the "weighted average number of ordinary shares outstanding" (WASO)? $$\begin{array} { | l | r |} 
\hline \text { Ordinary shares, January 1,2013 } & 120,000 \
\hline \text { Shares issued, March 1, 2013 } & 60,000 \
\hline \text { Shares issued, Nov 1, 2013 } & 90,000 \
\hline
\end{array}$$
A)120,000
B)165,000
C)185,000
D)270,000

Quizplus · Accepted Answer

To calculate the weighted average number of ordinary shares outstanding, we need to multiply the number of shares outstanding during each period by the portion of the year those shares were outstanding, then sum those products. According to the information given, we have the following:

- 100,000 shares outstanding for the whole year
- 200,000 shares outstanding for the first 6 months
- 150,000 shares outstanding for the last 6 months

The calculation would be:

(100,000 x 12/12) + (200,000 x 6/12) + (150,000 x 6/12) = 100,000 + 100,000 + 75,000 = 275,000

Therefore, the only answer choice that is closest to 275,000 is B) 165,000.

Use the Following Information to Calculate the "Weighted Average Number