Treasury Stock Method for Diluted Shares Outstanding
Hi,
I've run into a technical question someone might be able to answer: I'm currently completing online training and I've seen two conflicting methods to calculate Diluted Shares Outstanding. In a modeling exercise, diluted shares outstanding were simply being calculated by adding the number of in the money options to the number of shares outstanding.
However, in a public comps, the instructor used the Treasury Stock Method (assumes options proceeds are used to repurchase stock) to calculate Market value of equity.
Is there a reason why the Treasury Stock Method is not being applied in a modeling forecast?
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