A Company has become the subject of a takeover offer. The Companys current share price is $12.40 per share, and shareholders have been offered $17.00 per share.

Calculate the fully diluted shares outstanding given the following information about the Company from Figure 1 and Figure 2 (next page) and the fact that the Company has convertible bonds outstanding with the following financial statement note regarding the bonds: the Company has outstanding $10 million of 5.25% convertible notes which are included in Long-term debt on the Balance Sheet. The notes are payable in cash at maturity unless holders exercise their option to convert the notes into shares of common stock. The initial conversion rate, provided under the terms of the Notes, is 76.9231 shares of common stock per $1,000 principal amount of notes.

Options Tranches 1 2345678 Balance Sheet 30-Jun-18 As of 10Q Quarterly Assets Cash 82,000,000 Accounts Receivable 5,600,000 Inventory 9,200,000 Current Assets 96,800,000 41,000,000 Property, Plant & Equipment Goodwill 0 Total Assets 137,800,000 Liabilities 4,600,000 Short Term Debt Accounts Payable Current Liabilities Long Term Debt Total Liabilities 4,600,000 51,000,000 55,600,000 Shareholders' Equity Equity Capital 69,000,000 Shares outstanding 2,062,539 Retained Earnings 13,200,000 Shareholders' Equity 82,200,000 Liabilities & Shareholders' Equity 137,800,000 Figure 1 Stock Options Outstanding Number 13,700 12,000 9,500 16,300 4,500 650 2,100 3,600 62,350 Weighted Average Exercise Price/Share 8.50 9.20 11.40 13.10 16.40 18.90 19.50 20.60 Figure 2 Period Ending 30-Sep-18 31-Dec-18 10K Annual 10Q Quarterly 83,200,000 110,000,000 6,100,000 7,100,000 9,800,000 10,300,000 99,100,000 127,400,000 40,000,000 38,000,000 0 0 139,100,000 165,400,000 0 4,700,000 5,200,000 4,700,000 5,200,000 32,000,000 32,000,000 36,700,000 37,200,000 69,000,000 69,000,000 2,071,240 2,083,333 33,400,000 59,200,000 102,400,000 128,200,000 139,100,000 165,400,000 Stock Options Exercisable Number 11,100 10,400 8,400 16,100 3,900 600 1,900 3,300 55,700 Weighted Average Exercise Price/Share 8.60 9.10 11.90 12,40 16.55 18.61 19.90 20.30 Options Tranches 1 2345678 Balance Sheet 30-Jun-18 As of 10Q Quarterly Assets Cash 82,000,000 Accounts Receivable 5,600,000 Inventory 9,200,000 Current Assets 96,800,000 41,000,000 Property, Plant & Equipment Goodwill 0 Total Assets 137,800,000 Liabilities 4,600,000 Short Term Debt Accounts Payable Current Liabilities Long Term Debt Total Liabilities 4,600,000 51,000,000 55,600,000 Shareholders' Equity Equity Capital 69,000,000 Shares outstanding 2,062,539 Retained Earnings 13,200,000 Shareholders' Equity 82,200,000 Liabilities & Shareholders' Equity 137,800,000 Figure 1 Stock Options Outstanding Number 13,700 12,000 9,500 16,300 4,500 650 2,100 3,600 62,350 Weighted Average Exercise Price/Share 8.50 9.20 11.40 13.10 16.40 18.90 19.50 20.60 Figure 2 Period Ending 30-Sep-18 31-Dec-18 10K Annual 10Q Quarterly 83,200,000 110,000,000 6,100,000 7,100,000 9,800,000 10,300,000 99,100,000 127,400,000 40,000,000 38,000,000 0 0 139,100,000 165,400,000 0 4,700,000 5,200,000 4,700,000 5,200,000 32,000,000 32,000,000 36,700,000 37,200,000 69,000,000 69,000,000 2,071,240 2,083,333 33,400,000 59,200,000 102,400,000 128,200,000 139,100,000 165,400,000 Stock Options Exercisable Number 11,100 10,400 8,400 16,100 3,900 600 1,900 3,300 55,700 Weighted Average Exercise Price/Share 8.60 9.10 11.90 12,40 16.55 18.61 19.90 20.30