What is value per share utilizing the option-pricing model

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Reference no: EM131308115

You are now becoming an expert at valuating companies. You have been consulted to value a technology company whose enterprise value is $800 million. There company does not have any debt owed to businesses. However, there is 10 million in employee options. You determined from your expertise based on the options-pricing models that you value each option at $6.67. You are to assume the average strike price is $15. There is a total of 40 million shares outstanding.

Requirement:

a. What is the company’s equity value?

b. What is the value per share utilizing the option-pricing model?

Reference no: EM131308115

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