16. Warrants (S22-3) Use the BlackScholes program from the Beyond the Page feature to value the Owens

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16. Warrants (S22-3) Use the Black–Scholes program from the Beyond the Page feature to value the Owens Corning warrants described in Section 22-3. The standard deviation of Owens Corning stock was 41% a year and the interest rate when the warrants were issued was 5%.

Owens Corning did not pay a dividend. Ignore the problem of dilution.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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