case12 - Finance B-flat major project Check if...

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Finance B-flat major project Check if equityholders want to switch Finance C-sharp minor project Check if equityholders want to switch Finance C-sharp major project Investment 20 Investment 20 Investment 20 Investment 20 Investment 20 NPV 5 NPV 4 NPV 4 NPV 6 NPV 4 Value increas 25 Value increas 24 Value increas 24 Value increas 26 Value increa 24 Initial firm valuation Initial firm valuation Initial firm valuation Initial firm valuation Initial firm valuation Earnigns 10 Earnigns 10 Earnigns 10 Earnigns 10 Earnigns 10 discount 0.09 discount 0.09 discount 0.09 discount 0.09 discount 0.09 Value 111.11 Value 111.11 Value 111.11 Value 111.11 Value 111.11 Auxiliary calculations Volatility 80.00% Volatility 72.00% Volatility 98.00% Volatility 90.00% Volatility 98.00% x N(x) N(x2) 1+rf ### 0.9444 0.2747 104.00% Asset price 136.11 Asset price 135.11 Asset price 135.11 Asset price 137.11 Asset price 135.11 Strike $36.53 Strike $36.53 Strike $44.86 Strike $44.86 Strike $55.30 Time (years) 5.00 Time (years)
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case12 - Finance B-flat major project Check if...

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