Question - Pharoah Corporation had 297,000 shares of common stock outstanding on January 1, 2017. On May 1, Pharoah issued 32,400 shares.
(a) Compute the weighted-average number of shares outstanding if the 32,400 shares were issued for cash.
(b) Compute the weighted-average number of shares outstanding if the 32,400 shares were issued in a stock dividend.