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When computing the weighted - average number of common shares outstanding for computing earnings per share, what is the correct treatment of a stock dividend
When computing the weightedaverage number of common shares outstanding for computing earnings per share, what is the correct treatment of a stock dividend issued during the year?
The stock dividend should be ignored since no additional capital was received.
The stock dividend should be weighted by the length of time that the additional number of shares are outstanding during the period.
The stock dividend should be included in the weightedaverage number of common shares outstanding only if the additional shares result in a decrease of percent or more in earnings per share.
The stock dividend should be weighted as if the additional shares were issued at the beginning of the year.
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