You just completed your valuation of a company with 10 million shares outstanding. You valued its common shares at $10 each. You now realize you forgot to consider that there are 2 million management stock options. These options have an exercise price of $7 each.

At what price should you have valued the stock?

Answer rating: 100% (QA)

The management stock options represent an additional 2 million shares that are not currently outstan... View the full answer