If the number of common shares outstanding changes during the period

If the number of common shares outstanding changes during the period

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If the number of common shares outstanding changes during the period, the weighted average  number of shares is used to calculate earnings per share. The weighting is based on how long  20,000 shares outstanding and issued an additional 5,400 shares on August 20, the weighted  average shares would be calculated as: Alternatively, the weighted average shares may be calculated using the total common shares  outstanding at a given time. Diluted earnings per share Diluted earnings per share uses the same formula. However, it requires that additional common 
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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