From the course: Comparable Valuation Analysis
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Restricted stock and other
From the course: Comparable Valuation Analysis
Restricted stock and other
We should also use the treasury stock method for restricted stock or other share awards. While there is no exercise price the employee must pay, the hypothetical proceeds would be the unrecognized compensation costs. Again, given the lack of information, we typically just add unvested restricted stock or other stock awards directly to the basic share count to derive the diluted share count. Now let's go through the company's footnotes and see what dilutive securities it has.
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