medium · Investment Banking

In the Enterprise Value bridge, how is this handled?

1. Include $1,000,000 in total debt and ignore the shares since they haven't been issued yet.
2. Treat the entire $1,000,000 as a cash equivalent since it is in-the-money.
3. Add 50,000 shares to the diluted share count and exclude $1,000,000 from total debt.
4. Include $1,000,000 in total debt and add 50,000 shares to the share count.

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