Enterprise & Equity Value
Basic shares 100m, stock at $48, offer price $60. Options: 6m @ $30 and 4m @ $48; warrants: 2m @ $12; RSUs: 3m. Compute fully diluted shares at BOTH prices and the equity purchase price.
Model answer
At $48: 6m @ $30 -> proceeds $180m, buyback 3.75m, net 2.25m. 4m @ $48 -> at-the-money, zero. Warrants -> proceeds $24m, buyback 0.5m, net 1.5m. RSUs +3m. FD = 100 + 2.25 + 1.5 + 3 = 106.75m. At the…
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