Here we're being asked to calculate the diluted equity value We've been given a share price, basic shares outstanding and then a footnote with stock options in it So we need to put some of this information Let's start putting that information together I start with my basic shares outstanding, that was 338.3 I then need to find the number of stock options What we can see in the table, are six columns of information. And these represent the information for three different years I've got shares and weighted average exercise price for the latest year Shares and weighted average exercise price for a middle year and shares and weighted averaged exercise price for the earliest year I want the latest year! The information I'm after is the number of options outstanding at the end of the period and that is 10,523 Now I need to be careful because I'm asked if the number of stock options in millions And it's been given to me in thousands, so I need to change where the decimal point is Now the strike price, that is your exercise price, that is 30.77 And the net new shares from options, that's now going to be our formula So I take the number of stock options, multiply it by the maximum of zero and my share price minus a strike price All divided by the share price Giving me net new shares 0.1. So my diluted shares outstanding is gong to be the basic plus the 0.1 giving me 338.4 in total I can now take that figure, multiply it by the share price And I've now got the diluted equity value 10,547.6