The weighted average shares outstanding for the year is 814,000
Solution:
Company had 700,000 shares
126,000 shares on May 1
1. [tex]\frac{126,000 * 8}{12}[/tex] = 84000
63,000 shares of treasury stock
2. [tex]\frac{63,000 * 4}{12}[/tex] = 21000
54,000 shares on November 1
3. [tex]\frac{54,000 * 2}{12}[/tex] = 9000
Now add all the shares = 700,000 + 84,000 + 21,000 + 9000
= 814000
The weighted average shares outstanding for the year is 814,000
