Page 27 - FINAL CFA I SLIDES JUNE 2019 DAY 7

Session Unit 7:
24. Understanding Income Statements

Step 1, p.59:

Adjust the number of pre-stock-dividend shares to post-stock-dividend units (to reflect the 10%
stock dividend). Shares issued or retired after the stock dividend are not affected.

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Step 2: Compute the weighted average number of post-stock dividend share