Question

Calculate fully diluted equity value using the information below: Current share price 5.50 Basic shares outstanding 1,000.0 Diluted WASO 995.0

Answer 1

The fully diluted equity value based on the information below is B. 5,472.5.

What is the fully diluted equity value?

The fully diluted equity value is the weighted average shares outstanding (WASO) multiplied by the current share price.

The WASO represents the total number of common shares of a company outstanding after all possible sources of share conversion.

The sources of share conversion include convertible bonds and employee stock options.

The WASO can be used to compute the diluted earnings per share (DPS) by dividing the Earnings by WASO.

Data and Calculations:

Current share price = $5.50

Basic shares outstanding = 1,000

Diluted WASO = 995.0

Fully diluted equity value = $5,472.5 (995.0 x $5.50)

Thus, the fully diluted equity value based on the information below is B. 5,472.5.

Learn more about fully diluted equity shares at https://brainly.com/question/13125514 and https://brainly.com/question/17250262

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Question Completion with Answer Options:

A. 6,115.8

B. 5,472.5

C. 5,554.8

D. 6,940.8