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Chapter 5

Basic EPS: Full price share issues

2.1 Weighted average number of shares: full price share issues

Cash is generated from share issues. These share issues contribute to earnings
potential.

The number of shares is time apportioned.

Actual number of shares n/12
in issue

number of shares before months before share X
share issue issue/12

number of shares after months after share X
share issue issue/12
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WAV
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