What is diluted shares outstanding using the treasury stock

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Problem 1: Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The exercise price of these options is $3.75. The company also has $200,000 of convertible bonds with an effective conversion price of $4.00. The average market share price for the reporting period is $7.50. What is the diluted shares outstanding using the treasury stock method, if-converted methods?

Option 1: 305,000
Option 2: 292,000
Option 3: 342,000
Option 4: 345,333

Reference no: EM132765328

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