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Some help and explanation will be great. Question V (20 Points) ABC ($mm) L C= D= 0 10 90 EV - E = 100 MVA=
Some help and explanation will be great.
Question V (20 Points) ABC ($mm) L C= D= 0 10 90 EV - E = 100 MVA= 100 MVL = 100 ABC's MVBS is above. ABC has outstanding 6 million common shares and 4 million options. Each option has an exercise price of $20/share (1 share per option). a) Based on the Intrinsic Value method what is the price of ABC's common stock and what is the intrinsic value of each option? Price ABC stock = $. /share Intrinsic Value ABC option = $_ /share b) ABC's CFO has valued the options at $2.00 each using the Black-Scholes (BS) model. Based on this BS value of the option and the other assumptions above, what is the price of ABC's common stock and what is the intrinsic value of each option? Price ABC stock =$ /share Intrinsic Value ABC option = $ share Question V (20 Points) ABC ($mm) L C= D= 0 10 90 EV - E = 100 MVA= 100 MVL = 100 ABC's MVBS is above. ABC has outstanding 6 million common shares and 4 million options. Each option has an exercise price of $20/share (1 share per option). a) Based on the Intrinsic Value method what is the price of ABC's common stock and what is the intrinsic value of each option? Price ABC stock = $. /share Intrinsic Value ABC option = $_ /share b) ABC's CFO has valued the options at $2.00 each using the Black-Scholes (BS) model. Based on this BS value of the option and the other assumptions above, what is the price of ABC's common stock and what is the intrinsic value of each option? Price ABC stock =$ /share Intrinsic Value ABC option = $ shareStep by Step Solution
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