ABC is a publicly traded company listed on NASDAQ. In ABC's 10-Q and 10-K public statements,...

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ABC is a publicly traded company listed on NASDAQ. In ABC's 10-Q and 10-K public statements, ABC disclosed that it recorded a $100 mil. pre-tax inventory write-off due to fire in the company's warehouse in 2015:Q2; it realized a $50 mil. pre-tax gain ("other income") on the sale of a non-core business in 2014:Q3; it additionally realized a $40 mil. pre-tax gain ("other income") on the sale of a non-core business and $20 mil. pre-tax restructuring costs in connection with a downsizing strategy in 2014:Q4. ABC has 125 mil. basic outstanding shares, with current stock price of $45 per share. The company has the following information about the options/warrants: Options/warrants Number of Shares Tranche (mil.) Exercise Price Tranche 1 10.00 $ 5.00 Tranche 2 7.50 $ 25.00 Tranche 3 5.00 $ 30.00 Tranche 4 2.50 $ 35.00 Tranche 5 1.00 $ 40.00 Tranche 6 0.50 $ 55.00 Q2. What is ABC's fully diluted shares outstanding given the information above? (10 Points). A. 140 B. 130 C. 145 D. 125 ABC is a publicly traded company listed on NASDAQ. In ABC's 10-Q and 10-K public statements, ABC disclosed that it recorded a $100 mil. pre-tax inventory write-off due to fire in the company's warehouse in 2015:Q2; it realized a $50 mil. pre-tax gain ("other income") on the sale of a non-core business in 2014:Q3; it additionally realized a $40 mil. pre-tax gain ("other income") on the sale of a non-core business and $20 mil. pre-tax restructuring costs in connection with a downsizing strategy in 2014:Q4. ABC has 125 mil. basic outstanding shares, with current stock price of $45 per share. The company has the following information about the options/warrants: Options/warrants Number of Shares Tranche (mil.) Exercise Price Tranche 1 10.00 $ 5.00 Tranche 2 7.50 $ 25.00 Tranche 3 5.00 $ 30.00 Tranche 4 2.50 $ 35.00 Tranche 5 1.00 $ 40.00 Tranche 6 0.50 $ 55.00 Q2. What is ABC's fully diluted shares outstanding given the information above? (10 Points). A. 140 B. 130 C. 145 D. 125

Answer rating: 100% (QA)

The answer is C 145 Heres why We need to consider the impact of optionswarrants on the fully diluted ... View the full answer