medium · Principles of Finance valuation

A firm has 50M basic shares outstanding trading at an average price of 50. It also has 4M in-the-money options with an exercise price of 30.

What is the diluted share count according to the Treasury Stock Method?

  1. 54.0M
  2. 52.4M
  3. 51.6M
  4. 50.0M

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