What is the difference in the expected returns on equity when using a Black-Scholes formula versus a traditional weighted average formula?
Assume rA = 0.12, rf = 0.06, asset value = $170, equity value = $45, debt to value ratio = 0.55, and delta = 0.6500.
A) 1.00%
B) 1.20%
C) 1.40%
D) 1.60%
C
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Under the provisions of the Sarbanes-Oxley Act, auditors must do which of the following?
A. Be hired by company management. B. Provide nonaudit services for their clients. C. Maintain working papers for at least seven years following an audit. D. Audit public companies whose chief executives worked for the audit firm in the preceding year.
The most significant award for Denny’s achievements came from ______.
a. Family Digest magazine b. Latina Style magazine c. Fortune magazine d. Asian Enterprise magazine
Which of the following statements about culture as an influence on consumer buying behavior is true?
A. A firm that understands the culture it is selling to has just as great a probability of selling its product as a firm that has no understanding of the culture. B. Some fear the proliferation of the Internet will increase cultural heterogeneity. C. Language is an important aspect of culture. D. Core values remain the same for all cultures. E. All of the statements about culture as an influence on consumer buying behavior are true.
In June, 1988, John Simpson granted to his son, D. Bruce Simpson, the right to purchase various parcels of real property that were held initially by John's revocable trust and later by his wife's (Mildred Simpson) revocable trust. The 1988 option agreement provided that Bruce could exercise the option at any time on or before 20 years from the date of the agreement and contained the following
clause: "[i]n consideration for the mutual promises made in this agreement." When some of the properties were transferred to Mildred's trust in 1993, Bruce executed a waiver of the option only to facilitate the transfer of the properties for estate planning purposes, and Mildred executed a written agreement ratifying and incorporating John's 1988 option agreement. John died in 2002, and Mildred died in 2006. The properties were thereafter administered by John's and Mildred's trusts. In April 2008, Bruce exercised the option on several of the parcels. Bruce then died in March 2009. In April 2009, the personal representative of Bruce's estate completed the purchase of the properties. Chris, who is John's other surviving son, filed a petition challenging the validity of the 1988 option agreement because of a lack of consideration with the vague clause. Family members testified that the mutual promises were related to John staying in the area, caring for his parents, and running the family fruit farm because Chris had left home and did not want to run the business. ?John exercised the option: A)?After it had expired. B)?Within the 20-year time period. C)?Without the authority to do so. D)?Too late because his parents had died.