The B.J. Services warrant is described in Section 23.1. How would you use the BlackScholes formula to
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The B.J. Services warrant is described in Section 23.1. How would you use the Black–Scholes formula to compute the value of the warrant immediately after its issue, assuming a stock price of $19 and a warrant price of $5? Begin by ignoring the problem of dilution. Then go on to describe how dilution would affect your calculations.
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a The warrant is like a 5year call option with an exercis...View the full answer
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Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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