00:01
Hello, students, we are going to write here, company a has $279 ,000, basic share outstanding and $26 ,000 outstanding options and warrants.
00:10
The exercise price of these options are given and a company also has $2 ,000 of conversival bonds with an effective conversion price of 4.
00:20
So if i write here, the average share price for repeating period is 7 .5.
00:25
What is the diluted shares outstanding using the treasury stock method? so if i write here for this, first we are going to write here, this must be, so if we are going to calculate first proceeds, so proceeds must be written as number of options multiplied by number of options.
00:49
That must be multiplied by exercise price.
00:54
So number of options are, if i write here for this, this is 26 ,000.
01:02
This is 26 ,000 that must be multiplied by exercise price.
01:07
So exercise price is 3 .75.
01:11
This must be 3 .75.
01:14
That is equivalent to $97 ,500.
01:19
So in the next case, this is number of shares...