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Question - On January 1, 20X5, Zachary GS Corp. (ZGS) capital structure included 400,000 common shares outstanding. On April 1, 20X5 ZGS declared and distributed a 10% stock dividend. On May 1, 20X5, ZGS issued (sold) an additional 70,000 common shares. A two-for-one stock split was distributed on October 1, 20X5. What is the weighted average number of common shares outstanding that ZGS will use to calculate basic earnings per share (EPS) for 20X5?
a. 604,167
b. 816,667
c. 953,333
d. 973,333
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