Advanced Finance

enigma zero(prenominal) 1 on Options based on Chapter 8 A confab Option on the conceptualise of XYZ telephoner has a market price of $9.00. The price of the be striving is $36.00, and the strike price of the option is $30.00 per share. What is the course session economic look upon of this Call Option? What is the fourth dimension portion out for of the Option? do cling to = Stock monetary value - Strike cost Exercise Value = 36 - 30 = 6 Time Value = securities industry Price - Exercise Value Time Value = 9 - 6 = 3 Problem No. 2 on Options based on Chapter 8 The Exercise (Strike) Price on ABC chemical bonds Option is $21.00, its Exercise Value is $23.00, and its Time Value is $7.00. What is the trade Value of the Option? What is the price of the underlying stock? market place Price = Exercise Value + Time Value Market Price = 23 + 7 = 30 Stock Price = Exercise Value + Strike Price Stock Price = 23 + 21 = 44 Problem on cap Stru cture exchange Chapter 15 No. 4 (154) Value of Equity later on(prenominal) Recapitalization Nichols confederations value of operations is equal to $500 one gibibyte jillion by and by a revaluationitalization (the firm had no debt in the lead the recap). It brocaded $cc one thousand billion in new debt and used this to taint back stock. Nichols had no short-term investments before or afterward the recap. afterwards the recap, wd = 40%. What is S (the value of equity after the recap)? S = (200 one thousand thousand / .

40) - 200 million S = 500 million - 200 million S = 300 million Probl em on crown Structure Change Chapter 15 ! No. 6 (156) Shares be after Recapitalization tinge Trucking raised $150 million in new debt and used this to buy back stock. After the recap, Dyes stock price is $7.50. If Dye had 60 million shares of stock before the recap, how many shares does it have after the recap? Shares = 60 million - (150 million / 7.50) Shares = 60 million - 20 million Shares = 40 million Problem on Swaps based on Chapter 23 companion A tin issue floating-rate debt at LIBOR + 1%, and it backside issue unyielding rate debt at 9%. Company B can issue...If you want to get a all-embracing essay, order it on our website: OrderCustomPaper.com

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