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question from VFM An analyst has valued SL Inc at $20 per share on a fully diluted basis. company has 5 million shares and 3

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An analyst has valued SL Inc at $20 per share on a fully diluted basis. company has 5 million shares and 3 million options. Using Black and Scholes model, the outstanding options are valued at $3 per option. a. Estimate the value per share using the option value approach. (3 marks) b. Which of the two valuations do you prefer and why? (2 marks)

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