A company has 10,000 shares at $20, 100 options at a $10 strike, 50 RSUs outstanding, and 100 convertible bonds at $1,000 par with a $10 conversion price. Calculate diluted shares.

Question

IBPrep · Accepted Answer

Options (TSM): 100 new − ($1,000 proceeds / $20) = 100 − 50 = 50 net new shares. RSUs: 50 added in full (no proceeds).

A company has 10,000 shares at $20, 100 options at a $10 strike, 50 RSUs outstanding, and 100 convertible bonds at $1,000 par with a $10 conversion price. Calculate diluted shares.

Answer

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