Capital market price of share = $15 -$0.50 = $14.50
The outcomes are the same.
50% - $25%
1 - 25%
P_ex = 30 - 6(1-t*)
$6 X 50% = $3 for dividend
Tax savings$30 - $26 = $4 x 25%
$1 Capital loss net t
You own a call option on Intuit stock with a strike price of $40. The option will expire
inexactly 3 months time.
a. If the stock is trading at $55 in 3 months, what will be the payoff of the call?
Bought a call option
which has a price of $40. You are thinking of buying TargetCo, which has earnings per
share of $2, 1 million shares outstanding, and a price per share of $25. You will pay for
Earnings per share
Price per shar
Total number of shares after the investment.
The venture capitalist must therefore own 2
PV = $5 million / 1.07 x 1.25=
PV = $5 million x 1.215 / 1.04=
I would say that the difference in the two methods are immaterial, $225, so the markets are therefore internationally integrated.
PV = $4 million / 1.05 x 1
(TCO D) Which of the following statements is not correct?
(a) When a corporation's shares are owned by a few individuals who
own most of the stock or are part of the firm's management, we say
that the firm is closely, or privately, held.