公司理财教材新原理跟实务第四节.pptVIP

Valuation of a Warrant Theoretical value of a warrant: max [ (N)(Ps) - E, 0] N = number of shares per warrant Ps = market price of one share of stock E = exercise price associated with the purchase of N shares Warrant Value Associated Common Stock Price Theoretical value line 45o Market value line Exercise price * Example of the Valuation of a Warrant Theoretical value of a warrant: max [ (N)(Ps) - E, 0] N = 1, Ps = $10 , E = $5 max[(1)($10)-$5, 0] = $5 N = 1, Ps = $15 , E = $5 max[(1)($15)-$5, 0] =$10 Warrant Value Associated Common Stock Price $5 $10 Stock appreciates 50% Theoretical