What are the options market value and the price of stock

Assignment Help Financial Management
Reference no: EM131305122

Options The exercise price on one of Flanagan Company's options is $15, its exercise value is $22, and its time value is $7. What are the option's market value and the price of the stock?

Option's market value $

Price of the stock $

Reference no: EM131305122

Questions Cloud

What is a ponzi scheme : How do the operators of a Ponzi scheme manage to keep it going? Are investors to blame for believing they can get rich quickly as this article indicates?
How were participants selected and recruited : Is the need for the study clearly stated in the introduction? Explain by using information presented in the literature review.What is the research hypothesis or question? What are the variables of interest (independent and dependent variables)? How a..
Important source of funds to small to medium sized firms : What is the most important source of funds to small- to medium-sized firms? What is the most important source of external funds to small- to medium-sized firms?
What would cost of equity be if the debt-equity ratio : Twice Shy Industries has a debt−equity ratio of 1.3. Its WACC is 7.1 percent, and its cost of debt is 6.6 percent. The corporate tax rate is 35 percent. What would the cost of equity be if the debt−equity ratio were 1.0?
What are the options market value and the price of stock : Options The exercise price on one of Flanagan Company's options is $15, its exercise value is $22, and its time value is $7. What are the option's market value and the price of the stock?
Why don'' insurance companies offer income insurance : With income insurance, if a person loses his job or doesn't get as big a raise as anticipated, he would be compensated under his insurance coverage. Why don't insurance companies offer income insurance of this type?
Describe some of the information problems : Describe some of the information problems in the financial system that lead firms to rely more heavily on internal funds than external funds to finance their growth.
What is edneys target fixed assets and sales ratio : Edney Manufacturing Company has $2 billion in slaes and $0.6 billion in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity. What level of sales could Edney have obtained if it had been operating on full capacity? Wha..
Does a market maker have different responsibilities : Does a market maker have different responsibilities than a financial firm that is providing investment advice for clients?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Nation state in which you would like to do business

Write a one to two page essay wherein you choose a nation state in which you would like to do business. In your essay describe the problems you might encounter in entering the foreign market and in running your business there.

  The firm will not be issuing any new common stock

You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earning..

  Pretax operating costs

You are evaluating two different silicon wafer milling machines. The Techron I costs $210,000, has a three-year life, and has pretax operating costs of $53,000 per year. The Techron II costs $370,000, has a five-year life, and has pretax operating co..

  Interest rates moved since alexander issued the bond

"Your company Alexander has a bond retiring in 2020. This bond has an interest rate of 13.5%, a face value of $10,300,000 and a closing price of $103.53. Since your company had sold these 10 year bonds at $100 in 2015, which way have interest rates m..

  What is the value of company based on correct calculation

LIS Company has $50 million in long-term debt, $75 million in shareholder’s equity [both figures are market value basis]. The cost of equity is 14%, cost of long-term debt is 12% and the tax rate is 25%. What is the weighted average cost of capital [..

  Value of the compensation that your cousin will receive

Your cousin just got an offer from a start –up, she will receive LE 2000 per month and the other part of her compensation is in the form of a stock grant of 500 shares of the company’s stock. How much is the value of the compensation that your cousin..

  Capital requirements obtained from different sources

The cost of capital may change when there are incremental capital requirements obtained from different sources, resulting in changes in capital structure. What qualitative considerations are important for a company seeking to raise capital? Answer th..

  Explain and offer the strengths-weakness-opportunities

You are the administrator of a major regional not-for profit hospital. At the latest board meeting, certain members of the board noted that an increasing amount of the competitor hospitals are pursuing "other sources of revenue". Please explain and o..

  How long do you have to pay before the account is overdue

You place an order for 320 units of inventory at a unit price of $180. The supplier offers terms of 3/15, net 30. How long do you have to pay before the account is overdue? a-2 If you take the full period, how much should you remit? What is the disco..

  Buy a seat if the company uses straight voting

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. If Schenkel has 390,000 shares out..

  Calculate the firms new long-term debt added during the year

During the year, Belyk Paving Co. had sales of $2,383,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,442,000, $436,700, and $491,700, respectively.  Calculate the firm's new long-term debt added during ..

  What is the accounting break-even level of output

You are considering a new product launch. The project will cost $1,800,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Accounting break-even-What is the degree of operating leverage at the accounting brea..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd