Reference no: EM132517432
Question - The following cases are independent.
Jethrow Ltd. had 1,000,000 common shares outstanding on 1 January 20X2.
On 27 February 200,000 shares were issued for $50 each.
300,000 shares were issued on 1 August.
A 2-for-1 stock split was distributed on 30 August.
On 1 January 20X7, Doomsday Corp. had 200,000 nonvoting Series A shares and 600,000 Series B voting shares outstanding. Series A shares have a $2 per share cumulative dividend paid quarterly and are convertible into two Series B shares at any time after 31 December 20X9.
On 1 October 20X7, 30,000 Series A shares were converted to B shares.
On 1 December 20X7, 72,000 Series B shares were retired for cash.
Required - For each case, calculate the number of weighted-average ordinary shares to use in the calculation of basic EPS. Assume a 31 December year-end.