Present value of after-tax free cash $12,000 flows Market value of Long Term Debt $6,000 Shares Outstanding 1,000 Using the DCF approach, the fair share price would be: $18.00 $21.00 $10.00 $6.00
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Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The exercise price of these options is $3.75. The company also has $200,000 of convertible bonds with an effective conversion price of $4.00. The average market share price for the reporting period is $7.50. What is the diluted shares outstanding using the treasury stock method?
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