14.7 In 1994 Euro Disney S.C.A. issued 290 million 10-year warrants to bond-holders and equity-holders, with three warrants giving the right to purchase one share at the exercise price of ¤6.098. Note that if these warrants end up in the money, the management stock options described in Section 14.7 would have been exercised, increasing Euro Disney equity by the exercise payment of those options. That would amount to ¤28.1 million and have a present value as of 1994 of ¤28.1/(1.08)121/2 = ¤10.7 million. Also, with the exercise of the management stock options the number of shares would increase by 19 million to 809 million. Use the warrants module of the Financial Options Calculator to value the warrants as of July 1, 1994 with the price and volatility data provided in Problem 14.6.