5 Much of corporate financial theory can be presented in terms of options. In this chapter, we...

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5 Much of corporate financial theory can be presented in terms of options. In this chapter, we pointed out that:

(a) Equity can be represented as a call option on the firm.

(b) Shareholders enhance the value of their call by increasing the risk of their firm.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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Question Posted: Jul 19, 2024 05:04 PM

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5 Much of corporate financial theory can be presented in terms of options. In this chapter, we...

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Corporate Finance

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