You are valuing a technology company whose enterprise value


You are valuing a technology company whose enterprise value is $800 million. The company has no debt, but considerable employee options, 10 million in total. Based on option pricing models, you value each option at $6.67 per option. If the company has 40 million shares outstanding, what is the company’s equity value and value per share? What is the value per share using the exercise value approach? Assume the average strike price equals $15.

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Financial Management: You are valuing a technology company whose enterprise value
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