3. You are trying to value a firm with management options outstanding. Using a discounted cashflow model, you have estimated the value of the equity in the firm to be $1,500M. There are 100 million shares outstanding and the firm has 50 million management options. The management options have an average exercise price of $5 and 3 years to expiration. The stock price currently is $11, the standard deviation in stock prices is 30%, and the 3-year riskfree rate is 2.4%. The stock does not pay dividends. a. Estimate the value of equity per share using the fully diluted number of shares. b. Estimate the value of equity per share using the treasury stock approach. c. Estimate the value of the options using the Black-Scholes model and then estimate the value per share using the primary shares outstanding