Concept 21.6-2 Option on assets of the firm
Fundamentals of Corporate Finance
Berk, DeMarzo, and Harford
05th Edition
A share of stock is a ______ option written on the assets of the firm with the strike equal to ___.
A share of stock is a ______ option written on the assets of the firm with the strike equal to ___.
Debt holders of a corporation can be thought of as owning the firm but having ___ a call option on the assets of the firm with the strike equal to ___.
Equity holders have the incentive to ___ the volatility of the firm, which is a cost to ___.
Identify the false statement regarding options.
Given the NasqadGS information for Apple Inc. – determine the price per share you’d pay to buy and sell the stock.
Your numbers will vary.
Find the annual sales for the company.
Your numbers will vary.
Figure out the annual depreciation and the book values for the end of the year.
Your numbers will vary.
Find the NPV for the project.
Your numbers will vary.
Find the project’s IRR.
Your numbers will vary.
Find the project’s equivalent annual cost.
Your numbers will vary.