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A Chilean company, AntarticOilCo, delivers fuel to large ships going to Antarctica. We suppose that on average 50 ships per year use this fueling station,
A Chilean company, AntarticOilCo, delivers fuel to large ships going to Antarctica. We suppose that on average 50 ships per year use this fueling station, before going to Antarctica. AntarticOilCo makes a profit of $100,000 per ship. AntarticOilCo has 2000 outstanding shares. The interest rate is 5%. What should be the value of a share of AntarticOilCo? Write all the mathematical derivations, even if they are in the notes.
Hint: you can model the cumulative number of ships as a Poisson process.
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