1 equity value questions of the kind asked in investment banking interviews. Each carries a model answer, the concepts a complete response must hit, and graded feedback on your own attempt.
1.Diluted Shares and the Treasury Stock Method
Medium
You will be asked to compute this by hand, without a calculator.
A company has 10 million basic shares trading at $50. It has 1 million options with a $20 strike. Calculate diluted shares and equity value using the treasury stock method.
Commonly asked at Goldman Sachs, Morgan Stanley, Jefferies~6 min
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