1. Mugsy Co. is planning to acquire Bugsy Ltd and the offer price is $50 per share. Bugsy currently has 1 million common shares outstanding, 1,000 convertible bonds each of which can be converted into 100 shares of common stock, and 2,000 in-the-money call options. Each call option allows its holder to buy 100 shares of common stock at an exercise price of $40 per share. What is Bugsy's number of fully diluted shares outstanding? 
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3. What is the adjusted equity value that Mugsy is paying, based on the fully diluted shares outstanding?

Answer rating: 100% (QA)

Number of Fully Diluted Shares Outstanding Bugsy Ltd currently has 1 million common shares outstandi... View the full answer