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please show detailed steps and results. TIA I'm not sure what more information you need because thats all the given info Question 3 (13 marks)
please show detailed steps and results. TIA
I'm not sure what more information you need because thats all the given info
Question 3 (13 marks) Options and Corporate Finance Assume that as of 7 September 2020, Google had no debt and had 600 million shares outstanding which implies a market capitalisation of $954,624 billion. Use the option data from 7 September 2020 in the table below to determine the rate (yield-to-maturity) Google would pay if it issued zero-coupon debt with a face value of $621 billion due in January 2022, and using the proceeds to pay a special dividend. Assume perfect capital markets. Hint: Assume perfect capital markets. That is debt issuance does not affect the total value of the firm. GOOG S1591.04 Calls for 6 January 2022 Strike Last Price 1000 647.20 1010597.50 1020 587.50 1035 560,10 1190 312.71 1200 396,57 1230 346.40 1250 334.00 1280 333.14 Question 3 (13 marks) Options and Corporate Finance Assume that as of 7 September 2020, Google had no debt and had 600 million shares outstanding which implies a market capitalisation of $954,624 billion. Use the option data from 7 September 2020 in the table below to determine the rate (yield-to-maturity) Google would pay if it issued zero-coupon debt with a face value of $621 billion due in January 2022, and using the proceeds to pay a special dividend. Assume perfect capital markets. Hint: Assume perfect capital markets. That is debt issuance does not affect the total value of the firm. GOOG S1591.04 Calls for 6 January 2022 Strike Last Price 1000 647.20 1010597.50 1020 587.50 1035 560,10 1190 312.71 1200 396,57 1230 346.40 1250 334.00 1280 333.14 Step by Step Solution
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