Question
The company GrowthClassic has a total number of 600 million common shares outstanding, with current trading price at $40 per share. In addition, the company
The company GrowthClassic has a total number of 600 million common shares outstanding, with current trading price at $40 per share. In addition, the company also has the following: 20 million stock options with exercise price of 20. Each option can be converted into 2 shares. 5 million stock warrants with exercise price of 25. Each option can be converted into 4 shares. $50 million convertible bonds, with face value $1000 and the convertible ratio is 50. A total of 2 million convertible preferred stocks X paying a dividend of 10% and convertible to 4 million shares of common stock at $30, with a par of $100 per preferred stock. A total number of 5 million convertible preferred stocks Y outstanding with a par value at 20 and each of the preferred share can be converted to one common share at $45 per share Based on the above information, please calculate the number of fully diluted shares outstanding of the company GrowthClassic. Please use both ifconverted method and net share settlement method when dealing with the convertible and equity-linked securities.
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