Answer: Option B

This question involves dilution adjustment for employee stock options. The formula calculates the adjusted option value when new shares are issued: $$\text{Adjusted Value} = \frac{N}{N + M} \times \text{Option Value}$$ Where: - N = 60,000,000 (existing shares) - M = 3,000,000 (new shares issued) - Option Value = 4.39 Calculation: $$\frac{60,000,000}{63,000,000} \times 4.39 = 0.95238 \times 4.39 = 4.1809$$ This adjustment accounts for the dilution effect when new shares are issued, reducing the value per share of existing options.

Author: LeetQuiz Editorial Team