A20-1 Weighted-Average Common Shares

The following cases are independent.

Case A

Jethrow Ltd. had 1,000,000 common shares outstanding on 1 January 20X2.

On 27 February 200,000 shares were issued for $50 each.

300,000 shares were issued on 1 August.

A 2-for-1 stock split was distributed on 30 August.

Case B

On 1 January 20X7, Doomsday Corp. had 200,000 nonvoting Series A shares and 600,000 Series B voting shares outstanding. Series A shares have a $2 per share cumulative dividend paid quarterly and are convertible into two Series B shares at any time after 31 December 20X9.

On 1 October 20X7, 30,000 Series A shares were converted to B shares.

On 1 December 20X7, 72,000 Series B shares were retired for cash.

Required: For each case, calculate the number of weighted-average ordinary shares to use in the calculation of basic EPS. Assume a 31 December year-end.