Value per Share Assignment | Homework For You

You have valued the operating assets of Hopscotch Entertainment, a small movie company, and arrived at a present value of $1.5 billion (by discounting FCFF at the cost of capital). The company has net debt of $300 million and 100 million shares outstanding. The company also has 25 million options outstanding, with a strike price of $8. Using the treasury stock approach for dealing with options, estimate the value per share for the company. A. $ 8.20 B. $ 10.20 c. $ 11.20 D. $ 14.20 E. $ 16.20. Get Finance homework help today