^Question:

1. Assuming the market was rational at the time (i.e. market prices reflect fundamental values), how much was Iridium worth on a per share basis at the end of 1998 according to the projections in Exhibit 5? What are the important determinants of value? (assume the market risk premium equals 7.5%). Conduct sensitivity analysis showing value of Iridium at different level of 2 factors (such as discount rate, etc) you think important.