A company has 20,000 shares at $25, 200 options at a $15 strike, 100 RSUs, and 50 convertible bonds at $1,000 par with a $20 conversion price. Calculate diluted shares.

Question

IBPrep · Accepted Answer

Options (treasury method): 200 new - ($3,000 proceeds / $25) = 200 - 120 = 80 net new shares. RSUs: 100 added in full (no proceeds).

A company has 20,000 shares at $25, 200 options at a $15 strike, 100 RSUs, and 50 convertible bonds at $1,000 par with a $20 conversion price. Calculate diluted shares.

Answer

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