Question
Company A has a total number of 200 million common shares outstanding at the moment. Its stock is currently trading at 40 per share. Apart
Company A has a total number of 200 million common shares outstanding at the moment. Its stock is currently trading at 40 per share. Apart from the common stocks, Company A has a total of 5 million stock options outstanding and each of the options is convertible to 4 common shares. Among these 5 million outstanding stock options, 2 million options have the exercise price of 25 while the rest have the exercise price of 50. At the same time, the company A has an amount of 200 million convertible securities X with the conversion price at 25. The company also has an amount of 1,000 million convertible securities Y with the conversion price at 55. Based on the above information, please calculate the number of fully diluted shares outstanding of the company A. Please use both if-converted method and net share settlement method when dealing with the convertible and equity-linked securities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started