Diluted Shares Outstanding Excel Equation I’m confused about an equation you used in the Merger Model Basics course. You calculated the “Number of Shares Equivalent” – the number of dilutive shares essentially – in the Walmart stores acquires Target accretion/dilution model using the equation =max(0,Number of Options*(1-Option Exe...I’m confused about an equation you used in the Merger Model Basics course. You calculated the “Number of Shares Equivalent” – the number of dilutive shares essentially – in the Walmart stores acquires Target accretion/dilution model using the equation =max(0,Number of Options*(1-Option Exercise Price/Share Price)). I know we are using the Treasury Stock Method and I understand how the Treasury Stock Method works. I calculate the same value for the dilutive shares on paper as this equation does, but I just don’t understand how this equation works. I calculated the value of the equation to the right of the “0” and it seems to me that this value is always negative so I don’t understand how it is calculating the correct number and why it is not returning “0”.Read More

Diluted Shares Outstanding Excel Equation

I’m confused about an equation you used in the Merger Model Basics course. You calculated the “Number of Shares Equivalent” – the number of dilutive shares essentially – in the Walmart stores acquires Target accretion/dilution model using the equation =max(0,Number of Options*(1-Option Exe... I’m confused about an equation you used in the Merger Model Basics course. You calculated the “Number of Shares Equivalent” – the number of dilutive shares essentially – in the Walmart stores acquires Target accretion/dilution model using the equation =max(0,Number of Options*(1-Option Exercise Price/Share Price)). I know we are using the Treasury Stock Method and I understand how the Treasury Stock Method works. I calculate the same value for the dilutive shares on paper as this equation does, but I just don’t understand how this equation works. I calculated the value of the equation to the right of the “0” and it seems to me that this value is always negative so I don’t understand how it is calculating the correct number and why it is not returning “0”. Read More