Hamm Corporation Had 200,000 Ordinary Shares Outstanding on January 1,2018

Hamm Corporation had 200,000 ordinary shares outstanding on January 1,2018.On April 1,2018,Hamm issued an additional 120,000 shares.On July 1,2018,Hamm repurchased 20,000 ordinary shares and cancelled them.On October 1,2018,Hamm issued an additional 50,000 ordinary shares.
Required:
a.What was the weighted average number of ordinary shares outstanding in 2018?
b.Assume that on July 1,2018 Hamm repurchased the shares and held them as treasury shares.Will the weighted average number of ordinary shares outstanding in 2016 change from the amount in part a? Why or why not?

Correct Answer:

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a.
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