Review View Book1 - Excel Tell me what you want to do 5. File Home Insert Page Layout AX Cut Calibel .N Copy - Paste Format Painter B T U 10. Clipboard Font Formulat Data A * == A. DYMO Label Wap Test Merge & Center. General $. % . Conditional Format as Cell Formatting Table Styles Styles Insert Dela - - N66 65 66 Answer: 69 2. Lance Inc.'s free cash flow was just $1.00 million. If the expected long-run growth rate for this company is 54%, if the weighted average cost of capital is 11.45 Lance has 54 70 million in short-term investments and $3 million in debt, and 1 million shares outstanding, what is the intrinsic stock price? $17.28 b. 517.70 c. $18.13 d. 51857 $19.01 369 Chapter 8 Financial Options and Applications in Corporate Finance es Model INTERMEDIATE PROBLEMS 3-4 Assume that you have been given the following information on Purcell Industries: Current stock price = $15 Strike price of option = $15 Time to maturity of option = 6 months Risk-free rate = 6% Variance of stock return = 0.12 d, = 0.24495 N(d) = 0.59675 dy = 0.00000 N(d) = 0.50000 111