medium · Investment Banking implied-share-price
When calculating fully diluted shares for a company with convertible bonds, the 'If-Converted' method is used.
If the bond is in-the-money, which of the following is done in the Enterprise Value bridge?
- Exclude the bond from Total Debt and add shares to FDSO
- Add the bond to Total Debt and add shares to FDSO
- Add the bond to Total Debt and do not add shares
- Exclude the bond from Total Debt and do not add shares
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