15.13 Using the information given below, calculate fully diluted shares. Assume the firm uses proceeds received from the conversion of options to common shares to repurchase as many of these new shares as possible. Select the correct answer from a through

e. (Appendix)

Calculating Fully Diluted Shares Outstanding

$ Million, except per share data, shares in millions Current share price 30.00 Basic shares outstanding 200.00 Options that can be exercised 40.00 Weighted average exercise price 20.00

a. 224.52

b. 263.59

c. 213.33

d. 256.87

e. 233.47 Answer: C