NACVA Exam CVA Topic 3 Question 109 Discussion

Actual exam question for NACVA's CVA exam

Question #: 109
Topic #: 3

[All CVA Questions]

Let's say that a company had 100,000 shares outstanding at the beginning of the year and issued 30,000 more shares on May 1. The 100,000 shares would be outstanding for four months and the 130,000 shares for eight months, or two-thirds of the year. The weighted average number of shares outstanding for the year would be:

A100, 000

B120,000

C140,000

D180,000

Show Suggested Answer

Suggested Answer: B

by Lawrence at Apr 03, 2025, 01:30 PM

Limited Time Offer

25%

Off

Get Premium CVA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Apolonia

13 hours ago

Wait, wait, wait. If the total shares were 130,000 for 8 months, that's 1,040,000 share-months. And the 100,000 shares for 4 months is 400,000 share-months. The total is 1,440,000 share-months, which divided by 12 months is 120,000 shares. B) is right, I got this!

upvoted 0 times

...

Stanton

10 days ago

Okay, let me think this through. We have 100,000 shares for 4 months and 130,000 shares for 8 months. That's a total of 12 months, so the weighted average should be 120,000. B) is the answer.

upvoted 0 times

...

Penney

16 days ago

Hmm, let's see. If there were 100,000 shares for 4 months and 130,000 shares for 8 months, that sounds like a weighted average. I'll go with B) 120,000.

upvoted 0 times

...