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

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Scarlet

8 days ago

Woohoo, a weighted average question! This is my jam. Alright, let's do this. *cracks knuckles* B) 120,000 shares, no doubt about it. I can practically smell the points on this one.

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Glory

14 days ago

Haha, this is like a math word problem straight out of my high school days. Let me see, 100,000 shares for 4 months, 130,000 shares for 8 months... Yep, B) 120,000 is the weighted average. Easy peasy!

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Apolonia

18 days 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!

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2 months ago

I think the answer is B) 120,000.

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