Treasury Stock Method (Formula, Examples) | Effect of Stock Options on EPS
3.9 هزار بار بازدید -
5 سال پیش
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In this video on the
In this video on the Treasury Stock Method, we use the treasury stock method formula to calculate the dilution of earnings per share due to Stock Options.
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐒𝐭𝐨𝐜𝐤 𝐌𝐞𝐭𝐡𝐨𝐝?
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Treasury Stock Method assumes that the options and warrants are exercised and the proceeds from the exercise of options and warrants are used to purchase common stock for the treasury.
This results in the lowering of the denominator
𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐒𝐭𝐨𝐜𝐤 𝐌𝐞𝐭𝐡𝐨𝐝 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
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Net Increase in the number of shares = In the money Options - Shares repurchased using stock proceeds
To learn more about 𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐒𝐭𝐨𝐜𝐤 𝐌𝐞𝐭𝐡𝐨𝐝, you may have a look at this detailed article - https://www.wallstreetmojo.com/treasu...
Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - @wallstreetmojo
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐒𝐭𝐨𝐜𝐤 𝐌𝐞𝐭𝐡𝐨𝐝?
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Treasury Stock Method assumes that the options and warrants are exercised and the proceeds from the exercise of options and warrants are used to purchase common stock for the treasury.
This results in the lowering of the denominator
𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐒𝐭𝐨𝐜𝐤 𝐌𝐞𝐭𝐡𝐨𝐝 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
-------------------------------------------------------------
Net Increase in the number of shares = In the money Options - Shares repurchased using stock proceeds
To learn more about 𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐒𝐭𝐨𝐜𝐤 𝐌𝐞𝐭𝐡𝐨𝐝, you may have a look at this detailed article - https://www.wallstreetmojo.com/treasu...
Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - @wallstreetmojo
5 سال پیش
در تاریخ 1398/06/26 منتشر شده
است.
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