Question
On the FCF/DCF sheet, why do we need to calculate fully diluted shares (essentially, explain how the shares get diluted)? Group of answer choices If
On the FCF/DCF sheet, why do we need to calculate fully diluted shares (essentially, explain how the shares get diluted)?
Group of answer choices
If you purchase an exchange traded option, exercising it requires the firm to issue you a new share at an above-market price, causing dilution
If you are an employee and issued options as part of your compensation, exercising it may require the firm to issue you a new share at a below-market price, causing dilution
If investors exercise their call options, it requires the firm to repurchase stock from those investors at an above-market price, which increases the number of shares on the market
Because the firm will add too much water to the shares, causing them to be diluted
Both A&B are correct
All of the above are correct
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