2. The intrinsic value of a warrant to buy 5 share of Merton stock at $55 per share is $20. What is the current market price of Merton Stock?© BrainMass Inc. brainmass.com June 3, 2020, 9:59 pm ad1c9bdddf
PVIF= Present Value Interest Factor
PVIFA= Present Value Interest Factor for an Annuity
They can be read from tables or calculated using the following equations
PVIF( n, r%)= =1/(1+r%)^n
PVIFA( n, r%)= =[1-1/(1+r%)^n]/r%
1. Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present value of this cash flow? Use an 11% discount ...
Calculates present value of cash flow and current market price of Stock given the intrinsic value of a warrant.