Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

NACVA Exam CVA Topic 3 Question 109 Discussion

Actual exam question for NACVA's CVA exam
Question #: 109
Topic #: 3
[All CVA Questions]

Let's say that a company had 100,000 shares outstanding at the beginning of the year and issued 30,000 more shares on May 1. The 100,000 shares would be outstanding for four months and the 130,000 shares for eight months, or two-thirds of the year. The weighted average number of shares outstanding for the year would be:

Show Suggested Answer Hide Answer
Suggested Answer: B

by Lawrence at Apr 03, 2025, 01:30 PM

Limited Time Offer

25%

Off

Get Premium CVA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Scarlet
13 days ago
Woohoo, a weighted average question! This is my jam. Alright, let's do this. *cracks knuckles* B) 120,000 shares, no doubt about it. I can practically smell the points on this one.
upvoted 0 times
...
Glory
19 days ago
Haha, this is like a math word problem straight out of my high school days. Let me see, 100,000 shares for 4 months, 130,000 shares for 8 months... Yep, B) 120,000 is the weighted average. Easy peasy!
upvoted 0 times
...
Apolonia
22 days ago
Wait, wait, wait. If the total shares were 130,000 for 8 months, that's 1,040,000 share-months. And the 100,000 shares for 4 months is 400,000 share-months. The total is 1,440,000 share-months, which divided by 12 months is 120,000 shares. B) is right, I got this!
upvoted 0 times
...
Stanton
1 months ago
Okay, let me think this through. We have 100,000 shares for 4 months and 130,000 shares for 8 months. That's a total of 12 months, so the weighted average should be 120,000. B) is the answer.
upvoted 0 times
Delsie
2 days ago
Great, so the answer is B) 120,000 shares.
upvoted 0 times
...
Dell
3 days ago
Yes, I agree. It makes sense to calculate it that way.
upvoted 0 times
...
Jose
9 days ago
I think you're right, the weighted average should be 120,000 shares.
upvoted 0 times
...
...
Penney
1 months ago
Hmm, let's see. If there were 100,000 shares for 4 months and 130,000 shares for 8 months, that sounds like a weighted average. I'll go with B) 120,000.
upvoted 0 times
...
Brett
2 months ago
I'm not sure about this one. Can someone explain how to calculate the weighted average number of shares outstanding?
upvoted 0 times
...
Enola
2 months ago
I agree with Vi. The rationale is that we need to calculate the weighted average based on the time each set of shares was outstanding.
upvoted 0 times
...
Vi
2 months ago
I think the answer is B) 120,000.
upvoted 0 times
...

Save Cancel