Which of the following will require a recalculation of weighted-average shares outstanding for all years presented?
A) Stock dividends and stock splits.
B) Stock dividends but not stock splits.
C) Stock splits but not stock dividends.
D) Stock rights.

Question

Quizplus · Accepted Answer

Both stock dividends and stock splits will affect the number of outstanding shares and therefore require a recalculation of weighted-average shares outstanding for all years presented. Stock rights do not necessarily affect the number of outstanding shares, and stock splits without stock dividends may not affect the weighted-average shares outstanding if the split does not change the total number of shares outstanding.

Which of the Following Will Require a Recalculation of Weighted-Average