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Ouest 23 23 On April 23, 2017, an investment banking M&A analyst is building a DCF for Panda Gears, a public company that has hired

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Ouest 23 23 On April 23, 2017, an investment banking M&A analyst is building a DCF for Panda Gears, a public company that has hired the analyst's investment bank to advise on a potential sale. As of the latest filing, Panda Gears has 110,456,300 shares of common stock currently outstanding. The latest closing share price is $30.12 per share. The analyst assumes an offer price of $35.00. In addition, it has provided the analyst the following disclosures regarding its dilutive securities: Restricted Stock Balance at 1/28/2016 Granted Vested Cancelled Balance at 1/28/2017 Restricted stock Weighted Average Grant Date Fair Value Per Share 1,014,672 28.59 494682 36.43 (463,132) 28.15 155,333) 32.16 990.889 32.51 Balance at 1/28/2017 990,889 32.51 Options Range of Exercise Prices Options outstanding Number of Weighted Average Remaining Shares as of 28 Contractual Life (in years) Jan-17 Weighted-Average Exercise Price Per Share Options exercisable Number of Shares as of 28- Jan-17 Weighted Average Exercise Price Per Share 19.70 370,193 20.73 $11.77 $23.18 6.51 799,993 24.96 360,905 25.15 780,655 7.39 $23.93 $29.52 $30.18 $30.18 n/a 8.53 30.18 3,366,560 738,732 38.61 39.74 6.71 $35.10 $41.27 1.850.165 382.590 42.32 4232 5.92 541.67 546.41 726,663 11 107 Question: Calculate diluted shares. Assume all options and restricted stock would automatically vest upon a change of control that in the money options and be exercised and thatontianacendensed to bwback.common stockat Question: Calculate diluted shares. Assume all options and restricted stock would automatically vest upon a change of control, that in-the-money options would be exercised, and that option proceeds are used to buy back common stock at the current stock price. o 111,699,691 112,484,460 115,898,190 O 116,394,369 116,394,397

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