Fred wrote...

>I mean if an employee is supposed to receive 4% of the shares

>of the company and there are say 10,000 shares outstanding, a

>formula to calculate the number of shares he/she should get.

>400 is the wrong answer. It should be closer to 417.

>Is there a formula that calculates that? TY
4% of 10,000 is 400, whether you want it to be or not.

You need to be clearer in your language. What you seem to mean is tha

this employee would be issued *NEW* shares of stock which should equa

4% of total shares outstanding *AFTER* these new shares had bee

issued.

Let N be the total number of shares after issuing new ones.

(N - 10000) / N = 0.04

N - 10000 = 0.04 N

0.96 N = 10000

N = 10000 / 0.96 = 10417 (rounded up)

So this employees shares would be

10000 * 0.04 / (1 - 0.04) = 417 (rounded up

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