Which One of the Following Is the Correct Calculation of Fully

question 27

Multiple Choice

Which one of the following is the correct calculation of fully diluted shares outstanding for a firm with in- the-money options, warrants, as well as convertible preferred and convertible debt?

• A) Out of the money options and warrants plus in the money convertible preferred and debt
• B) Basic shares outstanding + in-the-money options and warrants + in the money convertible preferred and debt
• C) In the money options and warrants + in the money convertible preferred and debt
• D) Basic shares outstanding + out of the money options and warrants.
• E) Basic shares outstanding + convertible preferred and debt

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Definitions:

Short Run

A period in economics where at least one factor of production is fixed and cannot be varied to influence output.

Long Run

A period during which all inputs can be adjusted by firms, as opposed to the short run where some inputs are fixed.

Aggregate Demand Curve

A curve that represents the total demand for all goods and services in an economy at various price levels, typically downward sloping.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, a measure of inflation.