How to calculate the weighted average number of shares outstanding during the year for calculation of Basic EPS in the case of a new company incorporated on 01.06.2010. There may be three options if no of shares are 10,000: 1. From the date of incorpoartion of the company.(10000*10/12) 2. From the date of allotment of shares by the company as mentioned in share certificate. 3.From the date of receipt of share subscription money.
Shares are outstanding from the date they are allotted- that is the date of allotment of shares. if these 10,000 shares are subscription shares, they are outstanding from the date of incorporation of the company. This is what I think in this case.
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