Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 1DTM
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2. What is the proceeds (in millions) from
the in-the-money options? (keep two
decimals)
3. What is the new shares in millions (the
shares from the in the money options -
the shares from repurchase) from the
options? (keep two decimals)
Transcribed Image Text:2. What is the proceeds (in millions) from the in-the-money options? (keep two decimals) 3. What is the new shares in millions (the shares from the in the money options - the shares from repurchase) from the options? (keep two decimals)
Using the information for the next 4
questions.
Current share price: $50; Basic shares
outstanding: 80 (in millions).
1. What is the total shares of in-the-
money options? (keep one decimal place)
number of
Exercise
shares
price
Tranche 1
1.5
$10
Tranche 2
1.0
$25
Tranche 3
0.2
$45
Tranche 4
0.4
$55
Transcribed Image Text:Using the information for the next 4 questions. Current share price: $50; Basic shares outstanding: 80 (in millions). 1. What is the total shares of in-the- money options? (keep one decimal place) number of Exercise shares price Tranche 1 1.5 $10 Tranche 2 1.0 $25 Tranche 3 0.2 $45 Tranche 4 0.4 $55
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