hard · Investment Banking implied-share-price
A firm's share price is 50.00. It has 10 million options outstanding with an exercise price of60.00.
How are these options treated in the calculation of Equity Value?
- They are included using the Treasury Stock Method.
- They are excluded from the calculation.
- They are treated as debt and added to Enterprise Value.
- The 10 million shares are added to the basic share count.
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