Question
1.Given the following, calculate the intrinsic value per share of Company XYZ's stock:(Can you please show how you got this answer) Corp. Value - $26
1.Given the following, calculate the intrinsic value per share of Company XYZ's stock:(Can you please show how you got this answer)
Corp. Value - $26 million
Bonds Outstanding - $10 million
ST Liabilities - $350 thousand
LT Growth Rate - 6%
Beta - 1.2
Shares Outstanding - 1.5 million
2.If GE's stock is trading at $25 per share, what is the intrinsic value of a put option with a strike price of $30 if the option is trading at $8?
3.The difference between the yield on a non-callable US Treasury bond and the yield on a non-callable corporate bond with identical maturities is known as ______.
Coupon premium
Interest premium
Market premium
Spread to treasuries
Interest spread
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