Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The exercise price of these options is $3.75. The company also has $200,000 of convertible bonds with an effective conversion price of $4.00. The average market share price for the reporting period is $7.50. What is the diluted shares outstanding using the treasury stock method & if-converted methods? OOOO 345,333 305,000 342,000 292,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter20: Financing With Derivatives
Section: Chapter Questions
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Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants.
The exercise price of these options is $3.75. The company also has $200,000 of convertible bonds
with an effective conversion price of $4.00. The average market share price for the reporting period
is $7.50. What is the diluted shares outstanding using the treasury stock method & if-converted
methods?
345,333
305,000
342,000
292,000
Transcribed Image Text:Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The exercise price of these options is $3.75. The company also has $200,000 of convertible bonds with an effective conversion price of $4.00. The average market share price for the reporting period is $7.50. What is the diluted shares outstanding using the treasury stock method & if-converted methods? 345,333 305,000 342,000 292,000
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