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EPS

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(Querist)
18 March 2011 Respected All,

How to calculate the weighted average number of shares outstanding during the year for calculation of Basic EPS in the case of a new company incorporated on 01.06.2010. There may be three options if no of shares are 10,000:
1. From the date of incorpoartion of the company.(10000*10/12)
2. From the date of allotment of shares by the company as mentioned in share certificate.
3.From the date of receipt of share subscription money.

Please reply at your earliest.

Regards
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Kaustuv

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Kaustuv (Expert)
18 March 2011 Hi Jyoti,

Shares are outstanding from the date they are allotted- that is the date of allotment of shares. if these 10,000 shares are subscription shares, they are outstanding from the date of incorporation of the company. This is what I think in this case.

Thanks,

Kaustuv

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