Sampson Corp. had 500,000 shares of common stock outstanding at the beginning of the year. The average market price was $20.
- On April 1, Sampson issued 100,000 shares of $1000 par value 10 percent preferred stock.
- On July 1, Sampson issued 200,000 warrants to purchase 10 shares of common stock each at $22 per share.
- On October 1, Sampson repurchased 60,000 of common stock as treasury stock for $15 per share.
The weighted average common shares outstanding Sampson should use to compute basic earnings per share (EPS) was:
A. 515,000.
B. 600,000.
C. 485,000.
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