The workout says, using the following information about Carne Inc, calculate equity value. Well we know that to calculate equity value we need the share price times by the number of shares. You can see the share price here of 6.50. The number of shares though is a bit trickier. We're looking for the number of shares outstanding, so let's go through the options. Well authorized number of shares, that's the theoretical maximum number of shares that could exist (so it's not that one). The number of issued shares, that's the number that's ever been issued by the company. But it's not necessarily the number outstanding today. The shares held in treasury, well that's the number of shares that have been bought back by the company. And then you've got the weighted average shares outstanding. So that's close, shares outstanding 62,500. But it's the average for the last period and I want the number at the end of the period (as close to today as possible). So the way to get there, we have to calculate it. I'm going to take the number of issued shares (which was 80,000), that have ever been issued by the company. But by then bought back 20,000. That means the number that are still outstanding outside the company is 60,000. So let's calculate that, the number of shares will be 80,000 minus the 20,000. So that gives me the number of shares outstanding. And I then multiply that by the share price. That gives me my answer, 390,000.