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On January 1, 2018, Peppers Potted Pots Ltd. had 300,000 common shares outstanding. On April 1, the corporation issued 30,000 new common shares to raise additional capital. On July 1, the corporation declared and distributed a 10% stock dividend on its common shares. On November 1, the corporation repurchased on the market 10,000 of its own outstanding common shares to make them available for issuances related to its key executives' outstanding stock options. Required:
Question 1) What is the weighted average number of shares outstanding as at December 31, 2018.
Question 2) Assume that Peppers Potted Pots had a 1-for-10 reverse stock split instead of a 10% stock dividend on July 1, 2018. Calculate the weighted average number of shares outstanding as at December 31, 2018.
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