Quinton Corp. had 300,000 common shares outstanding on January 1. It issued 60,000 new shares for cash on April 1 and repurchased 24,000 shares as treasury stock on October 1. What is the weighted average number of shares outstanding for the calendar year?

Correct answer: A) 339,000

Explanation

Shares are weighted by the fraction of the year they were outstanding: 300,000 x 12/12 = 300,000; new issue 60,000 x 9/12 = 45,000; repurchase -24,000 x 3/12 = -6,000. Weighted average = 300,000 + 45,000 - 6,000 = 339,000. The year-end count of 336,000 ignores timing, and reversing the fractions gives 297,000.