At 1 January, Solène SA has 3,000,000 units ordinary shares outstanding. On 1 March it issues 600,000 units shares for cash received on that date: they are outstanding for 10 months. On 1 November it buys back 300,000 units of its shares, which leave circulation for the last 2 months of the year ended 31 December (weighting in months, an approximation of the day-based time factor adopted for the case). Calculate the weighted average number of ordinary shares for the year.
- Ordinary shares at 1 January
- 3,000,000
- Shares issued on 1 March
- 600,000
- Months outstanding of the shares issued
- 10
- Shares bought back on 1 November
- 300,000
- Months elapsed since the buy-back
- 2